Macro 8 9 10 11

Front 1

Real GDP rising and ffalling is known as

Back 1

business cycle

Front 2

economic contraction is also known as

Back 2

Recession

Front 3

opposite of recession

Back 3

expansion

Front 4

top of the growth

Back 4

peak

Front 5

bottom of recession

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trough

Front 6

prolonged perios of severe economic contraction

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depression

Front 7

chnage before real GDP changes

Back 7

Leading Indicators

Front 8

change as GDP changes

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Coincident Indicators

Front 9

change after GDP changes

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lagging indicators

Front 10

percentage of labor force that is not working

number unemployed/number in labor force

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unemployment rate

Front 11

residents under 16
instittionallized adults
adults not looking for work

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people not counted in labor force

Front 12

people who have looked for work in the past year but have given up looking for work because they believe that no one will hire them

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discouraged workers

Front 13

underutilization of workers

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underemployment

Front 14

a product of regular, recurring changes in the hiring needs of certain industries on a monthly or seasonal basis

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seasonal unemployment

Front 15

a product of the short-term movement of workers between jobs and of first-time job seekers

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firctional unemployment

Front 16

a product of technological change and other changes in the structure of the economy

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structural unemployment

Front 17

a product of business-cycle fluctuations

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cyclical unemployment

Front 18

potential real GDP-Actual GDP

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GDP Gap

Front 19

unemployment rate that would exist in teh absence of cylical unemployment

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natural rate of unemployment

Front 20

T/F

Men have higher unemployment rate than women

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false

Front 21

T/F teenagers have highest unemployment rate in country

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True

Front 22

T/F whites have lower unemployment rates than nonwhites

Back 22

True

Front 23

sustained rise in the average level of prices

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inflation

Front 24

increases in total spending that are not offset by increases in the supply of goods and services and so cause the average level of prices to rise

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Demand-pull inflation

Front 25

increases in production costs that cause firms to raise prices to avoid losses

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cost-push inflation

Front 26

extremely high rate of inflation

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hyperinflation

Front 27

the total spending in the economy at alternative price levels

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aggregate demand

Front 28

total output of the economy at alternative price levels

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aggregate supply

Front 29

represents an increase in aggregate demand

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shift of AD curve to right

Front 30

represents increase in aggregate supply

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downwad shift of AS curve

Front 31

Income, wealth, epxectations, demographics, taxes

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conumption factors that influence aggregate Demand

Front 32

interest rate, technology, cost of capital goods, capacity utilization

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investment factors that influence AD

Front 33

investment is _______ related to interest rate

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negatively

Front 34

income, prices, exchange rates, government policy

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net export factors that influence AD

Front 35

when prices change, purchasing power or wealth and of assets and AE react in opposite direction

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wealth effect

Front 36

when price level changes, interst taes change in some direction adn AE change i n opposite direction

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interest rate effect

Front 37

increase in supply of bonds ____interest rates

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raises

Front 38

domestic prices change while foreign prices stay same, leads to a change in exports

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international trade effect

Front 39

saving/savings

occurs over a unit of time

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saving

Front 40

saving/savings

an amount accumulated at a particular point int time

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savings

Front 41

relationship between consumption and disposable income

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consumption function

Front 42

relationship between saving and disposable income

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saving function

Front 43

when a household spends more than it earns in income, msut finance the spending by borrowing or using savings

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dissaving

Front 44

consumption that does not depend on income

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autononmous consumption

Front 45

change in consumption/change in DPI

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MPC

Front 46

change in savings/change in DPI

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MPS

Front 47

consumption/DPI

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APC

Front 48

saving/DPI

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APS

Front 49

value of all the assets owned by a household

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wealth

Front 50

profit from investment/cost

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rate of return

Front 51

change in imports/change in DPI

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MPM (marginal propensity to import)

Front 52

savings, taxes, imports

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leakages

Front 53

investment, exports, government spending

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injections

Front 54

1/(MPS+MPM)

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spending multiplier

Front 55

required change in spending for GDP to rise to reach equilibrium

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recessionary gap

Front 56

GDP gap/spending multiplier

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recessionary gap