Term
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Definition
| Economys overall proformances. (governments headachs) Unemployment problems. |
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Term
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Definition
1. Unemplyment rate- Tells how the economy is doing. 2. Price index- Inflation rate 3.GDP |
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Term
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Definition
| Percentage of the civilian labor force that is unemployed. |
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Term
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Definition
- Persons over 16 who are unemployed -Unemployed but activly seeking employment -Persons who are not in the armed forces |
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Term
Finding Unemployment rate |
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Definition
# of unemployed (# of labor force - # employed) # of labor force answer x 100 |
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Term
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Definition
1. Friction- Out of work while searching or changing jobs. 2. Cyclical- People out of work due to occational reduction in economic total demand for goods and services during recession. 3. Structual- :acl of unmarketable skills due to structural or technological change of the economy. |
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Term
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Definition
| A period of declinging output and employment more than two consecutive quarters. |
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Term
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Definition
| Rising output and employment |
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Term
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Definition
| Long and deep recession over a period of many years. |
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Term
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Definition
| A rise in the general level of prices- it means that more prices are going up than coming down. |
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Term
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Definition
Unanticipated- government fears benefits of some individuals and groups in society at the expense of others. Anticipated- |
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Term
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Definition
1- Consumer price index(CPI)- Rate of inflation for a market basket of consumer products typically purchased by urban residents. 2- Producer price index (PPT)- Rate of inflation in the whole sale price of finished products on both consumers and capitol goods. 3- GDP Deflator (Implicit price)- Value of all final goods and services produced in 1 year. |
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Term
| How to find Monetary Value |
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Definition
| Total output of the year x selling price of the year. |
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Term
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Definition
| GDP=C (consumption espendisures)+ I (Private investment) + G (Consumer goods) +NX |
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Term
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Definition
Expendisures for which government receives no goods or services in return. Example: Disabled people, Widows, Medicare |
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Term
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Definition
1. Nominal (Money)- not adjusted for changes in the price level of current monetary value. 2. Real GDP- Adjusted for change in price level. Inflation adjusted to GDP. |
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Term
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Definition
| Decrease in average price level will increase quantity of real output demanded because the purchasing power of your financial costs. AP rises, TQ decreases. |
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Term
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Definition
| Reduction in general price level tends to decrease the demand for money, decrease interest rates which causes consumption and investment spending to increase, increasing agrigate demand of real GDP. |
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Term
| 4 Determinents in the change in aggregate demand. |
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Definition
1. Consumer and businesses expectation (C+I) 2. Aggregate Wealth- (C+S) 3. Government policies- Spending taxes (G) 4. Foreign income + Foreign prices (NX) AD= C+I+G+NX |
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Term
| 3 Determanents of short run aggregate supply |
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Definition
1. Input prices 2. Technology 3. Productivity of labor |
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Term
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Definition
| Shocks to the economy caused by the decrease in AS due to higher resourse prices. |
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Term
Tax revenues Major Sources |
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Definition
1. Personal income tax 2. Social interest taxes 3. Corporate income takes 4. Excise taxes |
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Term
| Sources of government expenditures |
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Definition
1. Transfer payments- No goods or services in return. 2. Purchase on goods and services 3. Interest payments on national debt. |
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