Ch 13 Vocab Flashcards
Regular ups and downs of real GDP, which can interrupt economic growth.
Business Cycle
A period during which real GDP declines for at least two quarters in a row, or six consecutive months.
Recession
It is what an economy experiences when the general level of prices rises.
Inflation
A statistical series used to measure changes in the level of prices over time.
Price Index
A comprehensive statistical series that tracks monthly changes in the prices paid by consumers for a representative “basket” of goods and services.
Consumer Price Index
A representative selection of commonly purchased goods and services.
Market Basket
All sectors in the economy try to buy more goods and services than the economy can produce, causing shortages and driving up prices.
Demand-pull Inflation
Explanation claims that rising input costs, especially energy and organized labor, drive up the cost of producers for manufacturers and thus cause inflation.
Cost-push Inflation
The measure of joblessness. One of the most closely watched and politically charged statistics in the economy.
Unemployment Rate
The situation where workers are between jobs for one reason or another.
Frictional Unemployment
When economic progress, a change in consumer tastes and preferences, or a fundamental change in the operation of the economy reduces the demand for workers and their skills.
Structural Unemployment
Unemployment that occurs when workers are replaced by machines or automated systems that make their skills obsolete.
Technological Unemployment
Unemployment directly related to swings in the business cycle.
Cyclical Unemployment
Unemployment resulting from seasonal changes in the weather or in the demand for certain products or jobs.
Seasonal Unemployment
