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Flashcards in Module 2 Deck (91)
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1

Depression

A deep and prolonged downturn

2

Rescission

Short pweriods where the economy is falling (from a peak down to a trough)

3

Expansion

When the economy is in an upturn, (the distance from a trough to a peak)

4

Employment

Number of people with a paid job

5

Unemployment

Number of people without a job

6

Labor force

The sum of the employed and unemployed

7

Output and unemployment are ____________ related

Inversely

8

Aggregate output

The economies total production of stuff for a given time.

9

Inflation

A rise in the overall price of everything

10

Deflation

A decrease in the price of everything

11

Disinflation

When the rate of inflation is getting smaller, (note, still inflating)

12

Full employment on graph

The strait line

13

Peak (graph)

The maximums

14

Trough (graph)

The minimums

15

3 economic goals

1. Promote economic growth
2. Limit unemployment
3. Keep prices stable

16

National income and product accounts

Keeps tract of flows of money among different people

17

Stocks

A share of the ownership of a company

18

Bonds

A loan in the form of an IOU

19

Final goods and services

Goods and services sold to final user

20

Intermediate goods and services

Bought by firms as inputs for the production of final goods

21

GDP equation

GDP= C+I+G+X-IM

22

C

Consumer spending

23

I

Sales of investment goods

24

G

Government purchases

25

X

Exports

26

IM

Imports

27

Is consumer spending included in GDP

Yes

28

Is investment spending counted in GDP

Yes

29

Is government purchases included in GDP

Yes

30

Are net exports included in GDP

Yes