chapter 8 Economics

An unemployed college graduate is looking for his first job.

The average cost of the basic necessities of life, such as food, shelter, and clothing.

Shows how the average price of a standard group of goods changes over time

A metaphorical object to represent a collection of goods and services

too much money in the economy causes inflation

Total Number of workers; Number of employed + unemployed workers

A measure of the overall cost of goods and services bought by the typical urban consumer

Example of Seasonal employment

Workers without jobs,were available for work and tried to find employment in the past 4 weeks

percentage change in the price level from the previous period or base year.

žthe ability to purchase goods and services

occurs when people take time to find a job

a general increase in prices

Summer ends and local teens lose their jobs.

Zimbabwe experienced out of control price increases in their economy.

Prices rise in the United States as a result of successive stimulus packages

normal rate of unemployment around which the unemployment rate fluctuates

Inflation occurs when producers raise in order to meet increasing costs of inputs

rises during economic downturns and falls when the economy improves

Slumping sales lead to a cashier being laid off.

Income that does not increase when prices go up

A computer programmer is laid off because of a recession.

a person who wants a job, but has given up looking

government program to protect workers’ incomes when they become unemployed

žTotal number of workers; number of employed + unemployed workers

lack of basic human needs, such as clean water, nutrition, health care, education, clothing etc

working at a job that one is over qualified, or working part time when full time is available

Workers are laid off when local manufacturing plant closes because of a downturn in the economy

Normal rate of unemployment around which the unemployment rate fluctuates

Prices for meat, poultry and pork increase as a result of an increase in the price for corn.

sustained drop in the price levels

A literary editor leaves her job in New York to look for a job in San Francisco.

Example of Structural unemployment

Sustained drop in the price level

A teacher makes $60,000 dollars per year; paid once per month

Inflation occurs when demand for goods and services exceeds existing supplies