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AP Macro > Unit 1 > Flashcards

Unit 1 Flashcards

1
Q

The total quantity of final goods and services produced within an economy

A

Aggregate Output

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2
Q

The total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year in order to remove the effects of price changes

A

Real GDP

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3
Q

The total value of all final goods and services produced in the economy during a given year, calculated with the prices current in the year in which the output is produced

A

Nominal GDP

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4
Q

The method of calculating changes in the real GDP using the average between the growth rate calculated using early base year and the growth rate calculated using a later base year

A

Chain-linking

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5
Q

The GDP divided by the size of the population; equal to the average GDP per person

A

GDP per capita

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6
Q

People are currently holding a job in the economy, either full time or part time

A

Employed

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7
Q

People are actively looking for work but aren’t currently employed

A

Unemployed

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8
Q

Equal to the sum of the employed and the unemployed

A

Labor Force

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9
Q

The percentage of the population aged 16 or older that is in the labor force

A

Labor force participation

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10
Q

The percentage of the total number of people in the labor force who are unemployed

A

Unemployment rate

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11
Q

Nonworking people who are capable of working but have given up looking for job due to the state of the job market

A

Discouraged workers

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12
Q

Would like to be employed and have looked for a job in the recent past but are not currently looking for work

A

Marginally attached workers

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13
Q

Workers who would like to work more hours or who are overqualified for their jobs

A

Underemployed

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14
Q

Workers who spend time looking for employment

A

Job search

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15
Q

Unemployment due to the time workers spend in job search

A

Frictional Unemployment

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16
Q

Unemployment that results when workers lack the skills required for the available jobs, or there are or people seeking jobs in a labor market than there are jobs available at the current wage rate

A

Structural Unemployment

17
Q

Wages that employers set above the equilibrium wage rate as an incentive for better employee performance

A

Efficiency wages

18
Q

Unemployment rate that arises from the effects of frictional plus structural unemployment

A

Natural rate of unemployment

19
Q

Deviation of the actual rate of unemployment from the natural rate

A

Cyclical unemployment

20
Q

Wage rate divided by the price level to adjust for the effects of inflation or deflation

A

Real Wage

21
Q

Income divided by the price level to adjust for the effects of inflation or deflation

A

Real Income

22
Q

Percentage increase in the overall level of prices per year

A

Inflation Rate

23
Q

Increased costs of transactions caused by inflation

A

Shoe-leather costs

24
Q

The real costs of changing listed prices

A

Menu costs

25
Q

Arise from the way inflation makes money a less reliable unit of measure

A

Unit-of-account costs

26
Q

Interest rate actually paid for a loan

A

Nominal interest rate

27
Q

Nominal interest rate minus the rate of inflation

A

Real interest rate

28
Q

the process of bringing the inflation rate down

A

Disinflation

29
Q

Measure of the overall level of prices in the economy

A

Aggregate Price level

30
Q

Hypothetical set of consumer purchases of gods and services

A

Market Basket

31
Q

Measures the cost of purchasing a given market basket in a given year. The index value is normalized so that it is equal to 100 in a selected base year.

A

Price Index

32
Q

Measures the cost of the market basket of a typical urban American family.

A

Consumer Price Index (CPI)

33
Q

Measures the prices of goods and services purchased by producers.

A

Producer Price Index (PPI)

34
Q

For a given year is 100 times the ratio of nominal GDP to real GDP in that year.

A

GDP deflator

AP Macro (10 decks)

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