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29 Cards in this Set
- Front
- Back
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What is the unemployment rate formula |
(U/ U+E) × 100 |
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Define Frictional Unemployment |
Between jobs or in school |
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Define Seasonal Unemployment |
Employment during a specific season |
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Define Macroeconomics |
Large-scale economics |
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Define Microeconomics |
Small-scale economics |
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Define Business Cycle |
The ups and downs of the economy |
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Define Recession |
Recession is a contraction that lasts more than 6 months |
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Define a depression |
A contraction that lasts longer than 12 months |
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Define Expansion |
Expansion is when the economy is growing |
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Define trough |
When the economy hits it's lowest point |
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Define peak |
When the economy reaches it's highest point |
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Define contraction |
When the economy is going down |
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Define business fluctuations |
The constant changing of the economy |
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Describe the 4 forces that keep the business cycle going |
Business Investment- contraction; less investing Interest Rates & Credit- low interest is good Consumer Expectations- Spend more during expansion External Shocks- Disruptions and disasters |
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Define Cyclical Unemployment |
Unemployment that comes from basic business cycles |
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Define structural unemployment |
Unemployment caused by outsourcing and new technology |
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Define inflation |
General rise in prices |
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Describe the three types of economic indicators |
Leading- where the market is going Lagging- where the market currently is Precident- where the market has been |
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Define Market Basket |
A representation of commonly purchased goods and services |
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Define CPI |
Consumer Price Index shows the average price of goods within the market basket |
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Define GDP |
Gross domestic product is the value of the goods and services a country produces in a year |
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Define Aggregate Demand |
The total demand of products from the people |
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Define Aggregate Supply |
The total supply of products to the people |
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What are the two types of Inflation |
Demand-Pull: demand exceeds supply, prices rise Cost-Push: scarcity causes the cost of production to rise, prices rise |
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Know the 3 ingredients of economic growth |
Quality of Natural Resources Quality of Human Resources Increases in Capital Goods Improvements in Technology |
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What are some shortcomings of GDP |
-Doesn't measure non-market transactions -Doesn't measure inflation -Doesn't measure leisure activities |
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Know Two Recessions in U.S. History |
-The Recession of 2001 -The Great Depression |
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How did the Great Depression end? |
The New Deal and World War Two |
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How did the Recession of 2001 start? |
The tech bubble burst |
