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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.
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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
DEFINITION 2 number of people 16 and older who are available for employment TERM 3
DEFINITION 3 results from workers searching for suitable jobs and firms looking for suitable workers TERM 4
DEFINITION 4 results from workers not having the skills to obtain long-term employment TERM 5
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.
due to short-term cyclical fluctuations in the economy TERM 7
DEFINITION 7 labor force / working age population TIMES 100 TERM 8
DEFINITION 8
TERM 9
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
DEFINITION 10 rise in the overall price level, which decreases the purchasing power of moneyCALCULATING: (New CPI- Old CPI) / old CPI TIMES 100
yields actual output (Real GDP) and price level TERM 17
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
DEFINITION 18 when actual output is LESS than potential output TERM 19
DEFINITION 19 use of government purchases, taxes, and transfer payments to alter equilibrium output and the price level TERM 20
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
when government spending exceeds tax revenue for a given fiscal year TERM 22
DEFINITION 22 revenues are equal to expenditures TERM 23
DEFINITION 23 when the government takes in more than it spends TERM 24
DEFINITION 24 stocks and bonds are not money; the CARD ITSELF is not money TERM 25
DEFINITION 25 narrowest definition of money; includes currency, checkable deposits, and travelers checks
monetary manipulates money supply (and interest rates)fiscal policy is a change in government spending or taxation