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27 Cards in this Set
- Front
- Back
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Employed (Chap. 8) |
Currently working for pay |
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Unemployed
(Chap. 8) |
Out of work and actively looking for a job (Within the last 4 weeks in the U.S. & 16 or older) |
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Out of the labor force (Chap. 8) |
Those who are not working and not looking for work, whether they want employment or not |
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Labor force (Chap. 8) |
The number of employee plus the unemployed (Not including Out of the Labor Force) |
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Unemployment rate (Chap. 8) |
The percentage of adults who are in the labor force and those seeking jobs, but who do not have jobs |
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Unemployment rate formula (Chap. 8) |
Unemployed people/total labor force x100 |
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Cyclical unemployment (Chap. 8) |
Unemployment closely tied to the business cycle, like higher unemployment during a recession |
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Frictional unemployment (Chap. 8) |
Unemployment that occurs as workers move between jobs |
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Structural unemployment (Chap. 8) |
Unemployment that occurs because individuals lack skills valued by employers |
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Inflation (Chap. 9) |
A general and ongoing rise in the level of prices in an entire economy |
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Inflation rate formula (percentage change)
(Chap. 9.) |
(Price index (present) - Price index (past)/ Price index (past) x100 |
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Deflation
(Chap. 9) |
Severe negative inflation. When most prices in the economy are falling (The Great Depression) |
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Hyperinflation (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) |
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Consumer Price Index |
Based on household purchases |
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Stagflation (Chap. 9) |
Persistent high inflation combined with high unemployment & stagnant demand in a country's economy |
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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" |
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Keynesian Economics |
An economic theory where the short-run is focused on, & aggregate demand is prioritized as well |
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What are the components of Aggregate Demand? |
Consumption Investment Gov. Spending Exports Imports (Including taxes) |
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Neoclassical economics |
An economic theory where the long-run is focused upon, & aggregate supply is prioritized |
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What does Neoclassical economics say about recessions? |
That they are natural, & will fix themselves, & we should just focus on increasing supply & productivity |
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Potential GDP |
GDP at full employment |
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Equilibrium GDP |
Where Aggregate Supply & Aggregate Demand are equal; & where unemployment is lowest & economic growth is at its best |
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What happens the closer Aggreate Demand & Aggregate Supply are on a graph? |
Unemployment is lower & economic growth is upon its best |
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What would a rightward shift be? |
An increase |
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What would a leftward shift be? |
A decrease |
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What kind of graph would Aggregate Demand be? |
A horizontal graph |
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What kind of graph would Aggregate Supply be? |
A vertical graph |
