Terms : Hide Images
| 705522587 | Business Cycles | Alternating rises and declines in the level of economic activity, somtimes over several years. | 0 | |
| 705522588 | Peak | At this phase of the busines cycle, business activity has reached a temporary maximum. | 1 | |
| 705522589 | Recession | At this phase of the business cycle, there is a period of decline in total output, income, and employment | 2 | |
| 705522590 | Trough | At this phase of the business cycle, output and employment "bottom out" at their lowest levels | 3 | |
| 705522591 | Expansion | At this phase of the business cycle, real GDP, income, and employment rise | 4 | |
| 705522592 | Labor Force | Consists of people who are able and willing to work | 5 | |
| 705522593 | Unemployment Rate | The percentage of the labor force unemployed | 6 | |
| 705522594 | Discouraged Workers | Workers, who after unsuccesffully seeking work for a time, becoe discouraged and drop out of the labor force; these workers are not counted in the unemployment rate | 7 | |
| 705522595 | Frictional Unemployment | Consists of search employment and wait employment; used to describe workers who are either searching for jobs or waiting to take jobs in the near future | 8 | |
| 705522596 | Structural Unemployment | Describes workers that find it hard to obtain new jobs without retraining, gaining additional education, or relocating | 9 | |
| 705522597 | Cyclical Unemployment | Unemployment that is caused by a decline in total spending | 10 | |
| 705522598 | Full-Employment rate of unemployment/ Natural Rate of Unemployment (NRU) | The unemployment rate that is consisten with full employment (still less than 0 percent) | 11 | |
| 705522599 | Potential Output | At the natural rate of unemployment (NRU) the economy is said to be producing at this level | 12 | |
| 705522600 | GDP Gap | The difference between actual and potential GDP (can be positive or negative) | 13 | |
| 705522601 | Okun's law | Indicates that for every 1 percentage point by which the actual unemployment rate exceeds the natural rate, a negative GDP gap of about 2 percent occurs | 14 | |
| 705522602 | Inflation | A rise in the general level of prices | 15 | |
| 705522603 | Consumer Price Index | The main measure of inflation in the United States, compiled by the Bureau of Labor Statistics (BLS) | 16 | |
| 705522604 | Deflation | Price Level Declines | 17 | |
| 705522605 | Demand-Pull Inflation | Inflation produced by excess demand bidding up the prices of the limited output | 18 | |
| 705522606 | Cost-Push Inflation | Inflation arising on the supply, or cost side of the economy. Expalins rising prices in terms of factors that raise per unit production costs at each level of spending | 19 | |
| 705522607 | Per Unit Production Costs | The average cost of a particular level of output | 20 | |
| 705522608 | Core Inflation | The underlying increaes in the CPI after volatile food and energy prices are removed | 21 | |
| 705522609 | Nominal Income | The number of dolalrs received as wages, rent, interest, or profit | 22 | |
| 705522610 | Real Income | A measure of the amount of goods and services nominal income can by; it is the purchasing power of nominal income, or income adjusted for inflation | 23 | |
| 705522611 | Unanticipated Inflation | Causes real income and wealth to be redistributed, harming some and benifiting others | 24 | |
| 705522612 | Anticipated Inflation | Situations in which people see an inflation coming in advance, people are able to avoid or lessen the redistriubtion effects associated with this type of inflation | 25 | |
| 705522613 | Cost-of living adjustments (COLAs) | Some union workers recieve this in their pay when the CPI rises, although such increases rarely equal the full percentage rise in inflation | 26 | |
| 705522614 | Real Interest Rate | The precentage increase in purchasing power that the borrow pays the lender | 27 | |
| 705522615 | Nominal Interest Rate | The percentage increase in money that the borrower pays the lender, including that resulting from the built-in expectations of inflation, if any | 28 | |
| 705522616 | Hyperinflation | Extraordinarily rapid inflation; can have a devastating impact on real output and employment | 29 |
