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29 Cards in this Set
- Front
- Back
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Frictional Unemployment
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occurs when people take time to find a job
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Seasonal Unemployment
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occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season
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○ Structural Unemployment & causes
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occurs when workers’ skills don’t match the jobs that are available
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○ Cyclical unemployment
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unemployment that rises during economic downturns and falls when economy improves
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unemployment rate
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(#ppl unemployed)/(#ppl in civilian labor force)*100
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census
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official count of the population
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seasonally adjusting
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unemployment rate for each month inc’d/dec’d to take into account the level of seasonal unemployment
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○ full employment
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level of employment reached when there is no cyclical unemployment
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underemployed
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working at a job for which one is over
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○ discouraged workers
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ppl who want jobs but have given up looking
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inflation
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a general increase in prices
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○ purchasing power
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the ability to purchase g/s
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○ Price Index
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a measurement that shows how the avg price of a stdrd grp of goods changes over time
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■ Consumer Price Index (CPI)
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price index determined by measuring the price of a stnd grp of goods meant to represent the “market basket” of a typical urban consumer
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● market basket
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representative collection of g/s
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○ inflation rate
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percentage rate of change in price level over time
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■ core inflation rate
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rate of inflation excluding effects of food&energy prices
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■ hyperinflation
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out of control inflation
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■ Quantity theory
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too much money in economy causes inflation
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■ Demand Pull theory
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inflation occurs when demand for g/s exceeds existing supplies
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■ Cost
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Push theory
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● wage price spiral
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when rising wages cause higher prices which cause higher wages
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■ deflation
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sustained drop in price level
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effects of inflation
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erode purchasing power, erode income, interest rates
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fixed income
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income that doesn't inc as prices go up
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○ Poverty rate
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percentage of ppl in households w/income below official poverty line
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○ Income Distribution
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how the nation’s total income is dist among its population
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■ food stamps
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govt issued coupons that recipients exchange for food
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■ Lorenz curve
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illustrates income distribution
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