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17 Cards in this Set

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Business cycle
Alternating periods of economic growth and contraction, which can bemeasured by changes in real GDP
Peak
The phase of the business cycle in which real GDP reaches its maximum after rising during a recovery
Recession
A downturn in th ebusiness cycle during which real GDP declines; also called a contraction
Trough
The phase of the business cycel in which real GDP reaches its minimum after falling during recession
Recovery
An upturn in the business cycel during which real GDP rises; also called an expansion
Economic Growth
An expansion in national output measured by the annual percentage increase in a nation's real GDP
Leading indicators
Variables that change before real GDP changes
Coincident indicators
Variables that changeat the same time that real GDP changes
Lagging indicators
Variables that change after real GDP changes
Unemploymetn rate
The percentage of people in the labor force who are without jobs and are actively seeking jobs
Civilian Labor Force
The number of people16 years of age and older who are employed or who are actively seeking a job, excluding members of the armed forces, homemakers, discouraged workers, and other persons not in the labor force.
Discouraged worker
A person who wants to work but has given up searching for work becuase he or she believes there will be no job offers.
Frictional unemployment
Unemployment caused by the normal search time required bu workers with marketable skills who are changing jobs, initially entering the labor force, reentering thelabor force, or seasonally unemployment
Structural unemployment
Unemployment caused by a mismatch of the skills of out-of-workers and the skills required for existing job opportunities
Cyclical Unemployment
Unemployment caused by the lack of jobs during a recession
Full employment
The situation in which an economy operates at an unemployment rate equal to the sum of the frictionaland structural unemployment rates.
GDP gap
The difference between full-employment real GDP and actual GDP.