Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Economics Glossary: Key Terms in Macroeconomics and Microeconomics, Quizzes of Economics

Definitions for various economic terms, including unemployment, labor force, inflation, business cycle, and fiscal policy. It covers key concepts in macroeconomics and microeconomics, such as the consumer price index, real vs. Nominal values, aggregate demand, and short run aggregate supply.

Typology: Quizzes

2014/2015

Uploaded on 07/28/2015

aliciabuckelew
aliciabuckelew 🇺🇸

4

(1)

9 documents

1 / 7

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
TERM 1
Unemployment
DEFINITION 1
people who do not have a job, have actively looked for work
in the past four weeks, and are currently available for work.
TERM 2
labor force
DEFINITION 2
number of people 16 and older who are available for
employment
TERM 3
Frictional employment
DEFINITION 3
results from workers searching for suitable jobs and firms
looking for suitable workers
TERM 4
Structural unemployment
DEFINITION 4
results from workers not having the skills to obtain long-term
employment
TERM 5
seasonal unemployment
DEFINITION 5
occurs because of seasonal factors such as weather or
fluctuations in the demand for some goods or services during
different times of the year.
pf3
pf4
pf5

Partial preview of the text

Download Economics Glossary: Key Terms in Macroeconomics and Microeconomics and more Quizzes Economics in PDF only on Docsity!

Unemployment

people who do not have a job, have actively looked for work in the past four weeks, and are currently available for work. TERM 2

labor force

DEFINITION 2 number of people 16 and older who are available for employment TERM 3

Frictional employment

DEFINITION 3 results from workers searching for suitable jobs and firms looking for suitable workers TERM 4

Structural unemployment

DEFINITION 4 results from workers not having the skills to obtain long-term employment TERM 5

seasonal unemployment

DEFINITION 5 occurs because of seasonal factors such as weather or fluctuations in the demand for some goods or services during different times of the year.

cyclical umemployment

due to short-term cyclical fluctuations in the economy TERM 7

labor force participation

rate

DEFINITION 7 labor force / working age population TIMES 100 TERM 8

unemployment

rate

DEFINITION 8

of people unemployed / labor force TIMES 100

TERM 9

Consumer price index

DEFINITION 9 measure of the cost of a market basket that represents the consumption of a typical householdCALCULATING: current cost of basket of goods / base period cost of basket of goods TIMES 100 TERM 10

Inflation

DEFINITION 10 rise in the overall price level, which decreases the purchasing power of moneyCALCULATING: (New CPI- Old CPI) / old CPI TIMES 100

intersection of AD and SRAS

yields actual output (Real GDP) and price level TERM 17

long run aggregate supply

DEFINITION 17 represents how much output the country could sustainably produce if utilizing all resources. It is a HYPOTHETICAL measurement and VERTICAL LINE TERM 18

recessionary gap

DEFINITION 18 when actual output is LESS than potential output TERM 19

fiscal policy

DEFINITION 19 use of government purchases, taxes, and transfer payments to alter equilibrium output and the price level TERM 20

discretionary fiscal policy vs. automatic fiscal

policy

DEFINITION 20 Discretionary-actions taken in response to changes in the economy, but they do not follow a strict set of rules; rather, they usesubjectivejudgment to treat each situation in unique mannerautomatic stablizers-When the economy begins to go through an economic fluctuation, automatic stabilizers immediately respond without any official or government body having to take action

budget deficit

when government spending exceeds tax revenue for a given fiscal year TERM 22

budget balance

DEFINITION 22 revenues are equal to expenditures TERM 23

budget surplus

DEFINITION 23 when the government takes in more than it spends TERM 24

what is and what is not money

DEFINITION 24 stocks and bonds are not money; the CARD ITSELF is not money TERM 25

M

DEFINITION 25 narrowest definition of money; includes currency, checkable deposits, and travelers checks

different between monetary and fiscal

policy

monetary manipulates money supply (and interest rates)fiscal policy is a change in government spending or taxation