Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
30 Cards in this Set
- Front
- Back
|
discouraged workers |
former workers who are not actively looking for work and are not waiting to be called back to a job or to report to one |
|
|
frictional unemployment |
due to the natural "frictions" of the economy |
|
|
structural unemployment |
due to structural changes in the economy that eliminates some jobs and create other jobs for which the unemployed are unqualified |
|
|
natural unemployment |
caused by frictional and structural factors in the economy (frictional + structural) |
|
|
cyclical unemployment rate |
difference between unemployment rate and the natural unemployment |
|
|
full employment |
when unemployment rate is equal to the natural unemployment rate |
|
|
Gross Domestic Product |
total market value of all goods and services produced annually within a country's borders |
|
|
fixed investment |
newly produced capital goods; business purchases of capital goods |
|
|
inventory investment |
changes in business inventories (stock of unsold goods) |
|
|
exports |
total foreign spending on domestic goods |
|
|
imports |
total domestic spending on foreign goods |
|
|
national income |
total income earned by citizens and businesses |
|
|
corporate profits |
income earned by stockholders |
|
|
rental income |
income recieved by individuals for the use of their non-monetary assets |
|
|
net interest |
interest income received by the U.S. households and government minus the interest they paid out |
|
|
net domestic product |
total value of new goods available in the economy in a given year after worn-out capital goods have been replaced |
|
|
real GDP |
the value of the entire output produced annually within a country's borders, adjusted for inflation |
|
|
aggregate demand |
quantity demanded of all goods and services at different price levels, ceteris paribus |
|
|
aggregate supply |
quantity supplied of al goods and services at different price levels, ceteris paribus |
|
|
capital consumption allowance |
the estimated amount of goods used up in production through natural wear and tear |
|
|
income approach |
add the sum of all incomes earned in producing goods and services |
|
|
value approach |
add the value added at each stage of production of all goods and services |
|
|
Real Balance Effect |
the change in the purchasing power of dollar-denominated assets that results from a change in the price level |
|
|
Interest Rate Effect |
changes in household and business buying as the interest rate changes |
|
|
International Trade Effect |
the change in foreign sector spending as the price level changes |
|
|
price level |
a weighted average of the prices of all goods and services |
|
|
price index |
a measure of the price level |
|
|
consumer price index |
a widely cited index number for the price level; weighted average of prices of a specific set of goods and services purchased by a typical household |
|
|
inflation |
an increase in the price level measured on an annual basis |
|
|
inflation rate |
positive percentage change in the price level on an annual basis |
