Vocab unit 3 Flashcards
(29 cards)
A tool used to measure inflation that is made up of a market basket of goods purchased by the typical urban family.
consumer price index
The dollar value of all final goods and services produced in a country’s borders in a given year.
GDP
Goods and services that are used in the production of another good or service.
intermediate products
The dollar value of all final goods and services produced in a country’s borders in a given year that has been adjusted for inflation.
real GDP
The dollar value of all final goods and services produced anywhere in the world by a country in a given year.
GNP
The amount of exports minus the amount of imports.
net exports of goods and services
The idea that the economy goes through regular periods of expansion and contraction.
business cycle
A fall in a country’s GDP for a period of at least two quarters (6 months)
recession
The portion of a business cycle in which GDP has stopped rising and is about to start declining.
peak
The portion of a business cycle in which GDP has stopped declining and is about to start rising.
trough
The portion of a business cycle in which GDP is rising.
expansion
A dramatic decline in a country’s GDP in a short period of time or a slower decline that lasts for an extended amount of time.
depression
A general decrease in the purchasing power of a currency. Alternately, can be expressed as a general increase in the prices of goods.
inflation
A general increase in the purchasing power of a currency. Alternately, can be expressed as a general decrease in the prices of goods.
deflation
The average price of a statistically significant subset of all the goods and services in an economy.
price index
The central banking system of the United States.
federal reserve system
Inflation that is out of control and rising rapidly.
hyperinflation
A combination of rising inflation and a decrease in Gross Domestic Product.
stagflation
The total amount of all people in an economy who want to have a job.
labor force
Unemployment that occurs because workers choose to change their status and make themselves unemployed.
frictional unemployment
Unemployment that occurs because changes in the economy have caused your skills to no longer match the needs of the market.
structural unemployment
Unemployment that occurs because of downturns in the business cycle.
cyclical unemployment
Unemployment that occurs because certain jobs are not available during some portion of the year.
seasonal unemployment
A bank that belongs to the Federal Reserve System.
member bank
