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24 Cards in this Set
- Front
- Back
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Deflation |
Inflation rate shrinking |
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Disinflation |
A decrease in a growing inflation rate |
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Creeping inflation |
Barley noticeable 1-4% |
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Hyper inflation |
500+% cash becomes worthless |
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Galloping |
Less than 500% but still high |
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Recession |
6 month period where real gdp is down |
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Recovery/expansion |
A period of economic recovery where rgdp is up |
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What cause rgdp to fluctuate |
Inventory adjustments, change in taxation, discovery of resources, and improved technology and productivity |
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Capital goods/industries are_____by recessions |
Hurt most |
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Nondurable consumer goods and services are ____ by recessions |
Least impacted |
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Criticisms of unemployment rate |
1.Part time employees are counted even if they want full time work 2.discouraged workers aren’t counted |
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During a recession the unemployment rate |
Goes up |
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Frictional unemployment |
Temporary unemployment |
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Structural unemployment |
Happens because of structural changes such as new technology |
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Structural unemployment |
Happens because of structural changes such as new technology |
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Cyclical unemployment |
Associated with fluctuations in the business cycle aka recession businesses shrink and workers layed off |
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What type of unemployment can equal 0 |
Cyclical |
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Full employment exists when there is no |
Cyclical unemployment |
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Natural rate of unemployment = |
Frictional + structural |
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Okuns law |
For every 1 percent of cyclical unemplyment a gdp gap of 2 percent occurs |
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Demand pull inflation |
Excess demand drives cost up |
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Demand pull inflation |
Excess demand drives cost up |
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Cost-push inflation |
Resource price is going up raising price of everything else |
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The rule of 70 |
Takes the annual rate of growth divided by 70 to calculate the number of years till gdp will double |
