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Chapter 7 Economic Performance and Challenges Flashcards | StudBud
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Chapter 7 Economic Performance and Challenges
Chapter 7 Economic Performance and Challenges
50 terms
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Economic Performance and challenges #econ #Economic
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1
depreciation
disposable personal income
national income
NNP
the loss of value of capital equipment
2
nominal GDP
real GDP
GDP measured in current prices
GDP expressed in constant, or unchanging, prices
output
3
deflation
income level which is needed to support families
% of people who live with incomes below poverty line
a nation's total income distributed among its population
a sustained drop in the price level
4
contraction
trough
peak
an economic decline marked by falling real GDP
the lowest point in an economic contraction
5
quantity theory
aggregate demand
rising wages cause higher $ and higher $ cause higher wages
aggregate supply
theory that too much money in the economy causes inflation
6
real GDP per capita
real GDP divided by the total population of a country
the process of increasing the amount of capital per worker
capital deepening
quality of life
7
saving rate
stock market
the accumulation of savings made available for invesment
the proportion of disposable income that is saved
income not used for consumption
8
economic growth
the height of an economic expansion
a steady, long-term increase in real GDP
peak
trough
9
purchasing power
measurement that shows how average price of a standard group
price index
a general increase in prices across an economy
the ability to purchase goods and services
10
leading indicators
measured economic growth
a set of key economic variables that economists use
contraction
real GDP per capita
11
fixed income
a sustained drop in the price level
inflation
income that does not increase even when prices go up
deflation
12
capital deepening
saving
income not used for consumption
the process of increasing the amount of capital per worker
saving rate
13
core inflation rate
a representative collection of goods and services
rate of inflation excluding effects of food & energy prices
inflation that is out of control
the percentage rate of change in price level over time
14
real GDP
underground economy
nonmarket activities
GDP expressed in constant, or unchanging, prices
higher GDP
15
frictional unemployment
when people take time to find a job
when the structure of the economy changes
workers don't have the skills that match the jobs available
structural unemployment
16
gross domestic product
twenty dollar bill
products used in the production of final goods
intermediate foods
the dollar value of all final goods and services produced...
17
stagflation
depression
decline in real GDP combined with a rise in the price level
business investment
investment spending by businesses that creates additional...
18
globalization
when industries slow or shut down
cyclical unemployment
increasingly tight interconnection of producers, consumers..
seasonal unemployment
19
full employment
working at a job for which one is overqualified
working part time when full-time work is desired
the level of employment reached when there is no cyclical
underemployed
20
price index
a representative collection of goods and services
measurement that shows how the average price of a standard..
CPI
determined by measuring price of a standard group of goods
21
intermediate goods
durable goods
ten dollar bill
products used in the production of final goods
final goods and services
22
seasonal unemployment
rises during economic downturns
falls when the economy improves
cyclical unemployment
occurs when a of seasonal shifts in production schedules
23
durable goods
lasts a short time
nondurable goods
lasts forever
those goods that last for a relatively long time
24
inflation
the ability to purchase goods and services
purchasing power
a general increase in prices across an economy
25
saving
the accumulation of saving made available for investment
the proportion income that is saved
saving rates
income not used for consumption
26
aggregate demand
the amount of goods and services in the economy that will be
reduction in the quantity of goods and services
business cycle
purchased at all possible price levels
27
business cycle
peak
economic growth
expansion
a period of macroeconomic expansion followed by a period of
28
peak
the lowest point in an economic contraction
an economic decline
contraction
the height of an economic expantion
29
capital formation
an increase in efficiency gained by producing more output
population growth
technological process
the accumulation of savings made available for investment
30
trough
depression
a prolonged economic contraction
conraction
the lowest point in an economic contraction
31
inflation rate
rate of inflation excluding effects of food & energy prices
inflation that is out of control
the percentage rate of change in price level over time
core inflation rate
32
business investment
investment spending by businesses that creates additional..
output & jobs helping increase GDP & maintain the expansion
depression
stagflation
33
aggregate supply
Aggregate demand
the total amount of goods and services in the economy
the amounts of goods and services in the economy
34
depression
a deep recession with features such as high unemployment
stagflation
sad
a decline in real GDP
35
national income accounting
products used in the production of final goods
a system used to collect and organize macroeconomic statisti
five dollar bill
the dollar value of all final goods
36
discouraged worker
deflation
a general increase in prices across an economy
someone who wants a job but has given up looking
inflation
37
nondurable goods
net exports
goods that last a long period of time
GDP
goods that last a short period of time
38
underemployment
full time job
overqualified for job
someone who wants a job but has given up looking
discouraged
39
hyperinflation
inflation that is out of control
the percentage rate of change in price level over time
a representative collection of goods and services
rate of inflation excluding effects of food & energy prices
40
gross national product
depreciation
the annual income earned by nation's companies and people
the loss of value of capital equipment
GNP
41
price level
aggregate supply
the average of all prices in an economy
Real GDP
the total amount of goods and services in the economy
42
wage-price spiral
purchasing power
income that does not increase even when prices go up
interest rates
rising wages cause higher $ higher prices cause higher wages
43
market basket
the percentage rate of change in price level over time
price index
a representative collection of goods and services
consumer price index
44
expansion
the height of an economic expansion
a steady, long-term increase in real GDP
period of economic growth as measured by a rise in real GDP
economic decline
45
cyclical unemployment
rises during economic downturns & falls when economy improve
% of a nations labor force that is unemployed
unemployment rate
BLS
46
unemployment rate
% of a nation's labor force that is unemployed
structural unemployment
the level of employment reached when there is no cyclical
full employment
47
consumer price index
determined by measuring price of a standard group of goods
the percentage rate of change in price level over time
inflation rate
a representative collection of goods and services
48
structural unemployment
worker's skills don't match job available
tight interconnection of producers
lack of education
globalization
49
recession
a deep recession with features such as high unemployment
if a recession is especially long and severe
depression
a prolonged economic contraction
50
technological process
government aids innovation
an increase in efficiency gained by producing more output
potential profits
scale of the market
