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Flashcards in Economic Performance Test Deck (36)
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Describe Structural unemployment

Situation in which the job exists, but no one can fill it
Possible causes: New technology replaces workers, new industries require specialized education


Describe Cyclical unemployment

Caused by part of the business cycle with decreased economic activity
-follows business cycle, typically in contraction phase


Explain expansion of the business cycle

a period of economic growth or increase in a nation's real GDP over time
-Low unemployment
-More resources and higher prices


Explain peak of the business cycle

GDP is at its highest
-Resources are tightened due to rising prices
-Businesses lose some profits and cut production


Explain contraction of the business cycle

Economic slowdown or decline
-Producers cut back
-Resources become scarce
-Prices stabilize


Explain trough of the business cycle

The point at which GDP and unemplyment stop declining
-Cycle complete