Chapter 13 Vocab Flashcards
(22 cards)
Growth path the economy would follow if it were not interrupted by alternating periods of recession and recovery
Trend line
Period of uninterrupted growth of the real GDP
Expansion
State of the economy where everything comes to a stand still
Depression
Paper money issued by towns and chambers of commerce during the depression
Depression script
Statistical series that turns down before the economy turns down
Leading economic indicator
Composite index of 10 economic series that move up and down in advance of changes in the overall economy
Composite index of leading economic indicators
Mathematical expression used to describe how the economy is expected to perform in the future
Economic model
Increase in the general level of prices of goods and services
Inflation
Statistical series used to measure changes in the price level over time
Consumer price index
Representative selection of goods and services used to compile a price implex
Market basket
Year serving as a point of comparison for other years in a price index
Base year
Index used to measure prices received by domestic producers
Producer price index
Index used to measure price changes in the GDP
Implicit GDP price deflator
Explanation that rising importer cost, drive up the prices of products
Cost push inflation
Person to whom money is owed
Creditor
Person who borrows money
Debtor
Non institutionalized part of the population aged 16 and over
Civilian labor force
Not having a job
Unemployed
Hiring outside firms to perform non core operations to lower cost
Outsourcing
Unemployment caused by annual changes in weather or other conditions
Seasonal unemployment
Difference between what the economy can and does produce
GDP gap
Unofficial statistic that is the sum of the monthly inflation and unemployment rates
Misery index
