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32 Cards in this Set
- Front
- Back
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Business Cycles
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Largely systematic ups and downs of real GDP.
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Business Fluctuations
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The rise and fall of real GDP over time in a nonsystematic manner.
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Recession
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A period during which real GDP declines for two quarters in a row, or six consecutive months.
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Peak
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The point where real GDP stops going up.
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Trough
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The turnaround point where real GDP stops going down.
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Expansion
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A period of recovery from a recession.
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Trend Line
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A steady growth path in the economy.
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Depression
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A state of the economy with large numbers of people out of work, acute shortages, and excess capacity in manufacturing plants.
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Depression Scrip
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The currency printed by towns, counties, chambers of commerce, and other civic bodies resorted to printing during the Great Depression.
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Econometric Model
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A macroeconomic model that uses algebraic equations to describe how the economy behaves.
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Index Of Leading Indicators
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Monthly statistical series that usually turns down before real GDP turns down, and turns up before GDP turns up.
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Unemployed
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People available for work who made a specific effort to find a job during the past month and who, during the most recent survey week, worked less than one hour for pay or profit.
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Unemployment Rate
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The number of unemployed individuals divided by the total number of persons in the civilian labor force.
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Frictional Unemployment
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Uemployment caused by workers who are between jobs for one reason or another.
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Structural Unemployment
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Unemployment that occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills.
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Cyclical Unemployment
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Unemployment directly related to swings in the business cycle.
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Seasonal Unemployment
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Unemployment resulting from changes in the weather or changes in the demand for certain products.
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Technological unemployment
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Unemployment cause when workers with less skills, talent, or education are replaced by machines and other equipment that do their jobs.
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Automation
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Production with mechanical or other processes that reduce the need for workers.
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Price Level
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The relative magnitude of prices at one point in time.
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Deflation
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A decrease in the general price level.
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Creeping Inflation
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Inflation in the range of 1 to 3 percent per year.
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Galloping Inflation
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A more intense form of inflation that can go as high as 100 to 300 percent.
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Hyperinflation
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Inflation in the range of 500 percent a year and above.
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Lorenz Curve
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curve that shows how much the actual distribution of income varies from an equal distribution.
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Poverty guidelines
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Annual dollar amounts used to evaluate the money income that families and unrelated individuals receive.
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Welfare
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Economic and social programs that provide regular assistance from the government or private agencies because of need.
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Food Stamps
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Government-issued coupons that can be redeemed for food.
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Earned Income Tax Credit (EITC)
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Provides federal tax credits and sometimes cash to low-income workers.
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Enterprise zones
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Areas where companies can locate free of some local, state, and federal tax laws and other operating restrictions.
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Workfare
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A program that requires welfare recipients to exchange some of their labor for benefits.
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Negative Income Tax
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A proposed type of tax that would make cash payments to certain groups below the poverty line.
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