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24 Cards in this Set
- Front
- Back
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Demand-pull theory
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Theory that inflation occurs when demand for goods and services exceeds existing
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trough
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the lowest point in an economic contraction,when real GDP stops falling
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structural unemployment
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unemployment that occurs when workers skills do not match the jobs that are available
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cyclical unemployment
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unemployment that rises during economic downturns & falls when the economy improves
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seasonal unemployment
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unemployment that occurs as a result of harvest schedules or vacations
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frictional unemployment
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unemployment that occurs when people take time to find a job
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hyperinflation
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inflation that is out of control
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contraction
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a period of economic decline marked by falling real GDP
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peak
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the height of an economic expansion when real GDP stops rising
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expansion
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a period of economic growth as measured by a rise in real GDP
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business cycle
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a period of macro-economic expansion followed by a period of contraction
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underemployment
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working at a job for which one is over qualified ,or working part time when a full time job is desired
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GDP
(gross domestic production) |
the dollar value of all final goods and services produced within a countries boarders in a given year
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Recession
VS. Depression |
-a prolonged economic contraction
-a recession that is especially long and severe |
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capital deepening
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process of increasing the amount of capital per worker
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depreciation
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the loss of the value of capital equipment that results from wear and tear
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durable goods
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goods that last for a relatively long time,such as refrigerators,cars and DVD players
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deflation
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a sustained drop in the price level
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stagflation
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a decline in real GDP combined with a rise in the price level
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what is CPI?
(consumer price index) |
a price index is determined by measuring the price of standard group of goods ment to represent the typical "market basket" of a typical urban consumer
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intermediate goods
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goods used in the production of final goods
EX. cars made in Ohio by a Japanese car company produced within a countries borders * |
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quanity theory
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theory that too much money in the economy causes inflation
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cost-push theory
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theory that inflation occurs when producers raise price in order to meet increased cost
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Real GDP
VS. Nominal GDP |
-GDP expressed in contant or unchanging ,prices
-GDP measured in a current price |
