chapter 11 vocab Flashcards
(24 cards)
the percentage of people in the civilian labor force who are unemployed
unemployment rate
people who once held productive jobs but have given up looking for work
marginally attached workers
a subset of marginally attached workers-people who want a job but have stopped looking for work for job related reasons
discouraged workers
workers who have jobs beneath their skill level or who want full time work but are only able to find part-time jobs are considered to be____
underemployed
when workers are moving from one job to another they experience what is known as_______
frictional unemployment
unemployment that occurs as a result of changes in technology or in the way the economy is structured
structural unemployment
the unemployment rate may also fluctuate in a predictable way from season to season as a result of regular occurrences such as holidays, the school year, harvest schedules, and industry production schedules
seasonal unemployment
unemployment resulting from recessions and economic downturns
cyclical unemployment
the total amount of goods and services produced throughout the economy
aggregate supply
the total amount of spending by individuals and businesses throughout the economy
aggregate demand
an increase in the average price level of all products in an economy
inflation
a decrease in the average price level of all goods and services in an economy
deflation
when aggregate demand increases faster than the economy’s productive capacity
demand-pull inflation
when producers raise prices to cover higher resource cost
cost-push inflation
an event that increases the cost of production for all or many firms, resulting in overall higher prices
supply shock
when higher wages are encouraged by producers to raise them
wage-price spiral
a measure of the average change over time in the price of a fixed group of products
consumer price index
a measure of the average change over time in the prices of goods and services bought by producers
producer price index
the monthly or annual percentage change in prices
inflation rate
the worst degree of inflation–a situation in which inflation is increasing at a rate of several hundred percent a year
hyperinflation
poverty level, lowest income level, that a family or household of a certain size needs to maintain a basic standard of living
poverty threshold
the percentage of individuals or families in the total population or a subset of the population that are living in poverty
poverty rate
illustrates the amount that nation’s distribution of income varies from a perfectly proportional distribution of income
Lorenz Curve
another statistical measure of income inequality
Gini Index
