Module 2 Vocabulary Flashcards Preview

Microeconomics Vocabulary > Module 2 Vocabulary > Flashcards

Flashcards in Module 2 Vocabulary Deck (16):
1

the short run alternation between economic downturns, known as recessions, and economic upturns, known as expansions

business cycle

2

a very deep and prolonged downturn

depression

3

are periods of economic downturns when output and employment are falling

recessions

4

(recoveries) are periods of economic upturns when output and employment are rising

expansions

5

the number of people currently employed in the economy

employment

6

the number of people who are actively looking for work but aren't currently employed

unemployment

7

equal to the sum of employment and unemployment

labor force

8

the percentage of the labor force that is unemployed

unemployment rate

9

the quantity of goods and services produced

output

10

the economy's total production of goods and services for given time period

aggregate output

11

rising overall price

inflation

12

falling overall price level

deflation

13

when the aggregate price level is changing only slowly

price stability

14

an increase in the maximum amount of goods and services an economy can produce

economic growth

15

a simplified representation used to better understand a real-life situation

model

16

means that all the other relevant factors remain unchanged

other things equal assumption