• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

Card Range To Study



Play button


Play button




Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

27 Cards in this Set

  • Front
  • Back


(Chap. 8)

Currently working for pay


(Chap. 8)

Out of work and actively looking for a job

(Within the last 4 weeks in the U.S. & 16 or older)

Out of the labor force

(Chap. 8)

Those who are not working and not looking for work, whether they want employment or not

Labor force

(Chap. 8)

The number of employee plus the unemployed

(Not including Out of the Labor Force)

Unemployment rate

(Chap. 8)

The percentage of adults who are in the labor force and those seeking jobs, but who do not have jobs

Unemployment rate formula

(Chap. 8)

Unemployed people/total labor force x100

Cyclical unemployment

(Chap. 8)

Unemployment closely tied to the business cycle, like higher unemployment during a recession

Frictional unemployment

(Chap. 8)

Unemployment that occurs as workers move between jobs

Structural unemployment

(Chap. 8)

Unemployment that occurs because individuals lack skills valued by employers


(Chap. 9)

A general and ongoing rise in the level of prices in an entire economy

Inflation rate formula

(percentage change)

(Chap. 9.)

(Price index (present) - Price index (past)/ Price index (past) x100


(Chap. 9)

Severe negative inflation. When most prices in the economy are falling

(The Great Depression)


(Chap. 9)

An outburst of high inflation that often occurs (although not exclusively) when economics shift from a controlled economy to a market-oriented economy

(The closest was Civil War in the Confederate States)

Consumer Price Index

Based on household purchases


(Chap. 9)

Persistent high inflation combined with high unemployment & stagnant demand in a country's economy

What is the effect of inflation on consumer's buying power?

Prices would go up due to a lot of people being able to purchase much, & the money (dollar) would likely become as "worthless"

Keynesian Economics

An economic theory where the short-run is focused on, & aggregate demand is prioritized as well

What are the components of Aggregate Demand?



Gov. Spending



(Including taxes)

Neoclassical economics

An economic theory where the long-run is focused upon, & aggregate supply is prioritized

What does Neoclassical economics say about recessions?

That they are natural, & will fix themselves, & we should just focus on increasing supply & productivity

Potential GDP

GDP at full employment

Equilibrium GDP

Where Aggregate Supply & Aggregate Demand are equal; & where unemployment is lowest & economic growth is at its best

What happens the closer Aggreate Demand & Aggregate Supply are on a graph?

Unemployment is lower & economic growth is upon its best

What would a rightward shift be?

An increase

What would a leftward shift be?

A decrease

What kind of graph would Aggregate Demand be?

A horizontal graph

What kind of graph would Aggregate Supply be?

A vertical graph