Econ 4

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Business cycle

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a cycle or series of cycles of economic expansion and contraction

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CPI

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A consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households.

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Cyclical unemployment

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When there is not enough demand in the economy to provide jobs for everyone who wants to work.

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VERY BAD

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Deflation

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is a decrease in the general price level of goods and services.

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Depression

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is characterized by economic factors such as substantial increases in unemployment, a drop in available credit, diminishing output, bankruptcies and sovereign debt defaults, reduced trade and commerce, and sustained volatility in currency values.

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Discouraged worker

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is a person of legal employment age who is not actively seeking employment or who does not find employment after long-term unemployment. This is usually because an individual has given up looking or has had no success in finding a job, hence the term "discouraged".

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Durable goods

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products that do not have to be purchased frequently.

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Earned Income Tax Credit

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EITC) is a financial boost for people working hard to make ends meet. Millions of workers may qualify for the first time this year due to changes in their marital, parental or financial status.

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Final goods

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any commodity which is produced and subsequently consumed by the consumer, to satisfy its current wants or needs

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Frictional unemployment

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the unemployment which exists in any economy due to people being in the process of moving from one job to another.

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Great Depression

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the financial and industrial slump of 1929 and subsequent years.

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Gross domestic product

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the total value of goods produced and services provided in a country during one year.

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Hyperinflation

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monetary inflation occurring at a very high rate.

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Inflation

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a general increase in prices and fall in the purchasing value of money.

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Intermediate good

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is a good or service that is used in the eventual production of a final good, or finished product.

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Investment

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the action or process of investing money for profit or material result.

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Leading indicators

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A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate.

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Market basket

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The term market basket or commodity bundle refers to a fixed list of items used specifically to track the progress of

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Capital deepening

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is a situation where the capital per worker is increasing in the economy. often measured by the rate of change in capital stock per labour hour.

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Medicaid

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provide free or low-cost health coverage to millions of Americans, including some low-income people, families and children, pregnant women, the elderly, and people with disabilities. Both programs are run jointly by federal and state governments, and details vary somewhat between states.

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Medicare

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federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD).

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Nominal GDP

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include all of the changes in market prices that have occurred during the current year due to inflation or deflation.

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Nondurable goods

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They may be defined either as goods that are immediately consumed in one use or ones that have a lifespan of less than 3 years.

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Poverty

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the state of being extremely poor.

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Poverty threshold

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is the minimum level of income deemed adequate in a particular country. I

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Poverty rate

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Percent of people who were in poverty in a calendar year. Annual poverty rates from the Current Population Survey and the decennial census long form are based on income reported at an annual figure.

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Productivity

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the effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

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Real GDP

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is a macroeconomic measure of the value of economic output adjusted for price changes

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Recession

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a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

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Structural unemployment

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unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

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underemployment rate

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workers that are highly skilled but working in low paying jobs, workers that are highly skilled but work in low skill jobs and part-time workers that would prefer to be full-time.

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Underground economy

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the part of a country's economic activity that is unrecorded and untaxed by its government.

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Unemployed

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without a paid job but available to work.

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Welfare

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it specifically refers to utility gained through the achievement of material goods and services.