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21 Cards in this Set
- Front
- Back
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civilian labor force
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employed and unemployed
DOES NOT INCLUDE people under 16, institutional, armed forces, people not in labor force |
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frictional
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normal job search process
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seasonal
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construction workers out of work in winter in minnesota
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cyclical
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business cycles
due to recession markets for durable goods- cars, houses, furniture |
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Structural
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Mismatch of workers and jobs, locations and skills
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natural rate of unemployment (all but cyclical)
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5.5
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Monarchy
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Dictatorship
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Democracy
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Everyone votes on every decision
We all get one vote, same outcome problem: tyranny of the majority- losers live w/ decision |
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Republic
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representative democracy
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To approve constitutional amendment requires
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super majority or 3/4 or 38 states
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Consumer Price Index (CPI)
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prices of about 250 items commonly purchased by urban consumers
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Producer Price Index
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2,000 items commonly traded at the early and intermediate stage of production
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GDP Deflator
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Price of all items in GDP quarterly, updated monthly
chain-link index look at price change from quarter to quarter then link all prices together nominal gdp divided by real gdp |
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Lespeyres Index
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1) Choose items to be included
2) Base period cpi using 1982-1984 3) During base period, record quantity purchased (defining market basket) 4) During base period, record price of each item 5) During Current period, record price of each of those same items 6) Calculate money needed to buy the base period quantities at base period price 7)Calculate the amount of money needed to buy the base price quantities of we pay current period prices 8) Calculate #7 as a precent of #6 |
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Problems
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we dont buy same items due to technological advances
ex. cell phones vs land lines and fashion changes substitution bias- if the price of beef increases relative to other prices we buy less beef, more chicken CPI assumes we buy the same market basket Quality bias- there have been qualitative changes ex. audio speaker gps video quality |
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inflation rate
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period-to-period percentage change in price level (price index)
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outlet bias
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President Clinton Commission
CPI grows/overstates inflation by 1.1% per year (cost of living increase=increase in social security) |
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Simon Kuznets
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National Income and Product Accounts
1920s one person spending is anothers income we earn income by producing goods and services |
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Gross Domestic Product
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Total Spending=Total Income=Total Value of Production
GDP is the dollar value of all final goods and services currently produced in the nation |
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Nominal GDP
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Current dollar GDP calculated quarterly
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Per capita GDP
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Divide GDP by population
ex. 17 billion/315 million |
