Chapter 18 Flashcards
(28 cards)
Consumption (C)
The part of GDP purchased by households as final users
Cyclical Unemployment
Joblessness arising from changes in production over the business cycle
Discouraged Workers
Individuals who would like a job, but have given up searching for one
Employment-Population Ratio
Total employment (from the household survey) divided by the total population over age 16
Expenditure approach
Measuring GDP by adding the value of goods and services purchased by each type of final user
Factor Payments
Payments to the owners of resources that are used in production
Factor Payments approach
Measuring GDP by summing the factor payments earned by all households in the economy
Frictional Unemployment
Joblessness experienced by people who are between jobs or who are just entering or reentering the labor market
Full Employment
A situation in which there is no cyclical unemployment
Government Purchases (G)
Spending by federal, state, and local governments on goods and services
Gross Domestic Product
The total value of all final goods and services produced for the marketplace during a given year, within the nation’s borders.
Intermediate Goods
Goods used up in producing final goods
Involuntary Part-Time Workers
Individuals who would like a full-time job, but who are working only part time
Labor force
Those people who have a job or who are looking for one
Net Exports (NX)
Total exports minus total imports
Net Investment
Investment minus depreciation
Nominal Variable
A variable measured without adjustment for the dollar’s changing value
Nonmarket Production
Goods and services that are produced but not sold on market
Potential Output
The level of output the economy could produce if operating at full employment
Real Variable
A variable adjusted for changes in the dollar’s value
Seasonal Adjustment
Adjusting an economic variable to remove the effects of changes predicted to occur at that time of year
Seasonal Unemployment
Joblessness related to changes in weather, tourist patters, or other seasonal factors
Slump
A period during which real GDP is below potential and/or the employment rate is below normal
Structural Unemployment
Joblessness arising from mismatches between worker’s skill and employers’ requirements or between worker’s locations and employers locations
