Macro Economics Chapter 06 Key Words Flashcards

2
Q

business cycle

A

Alternating periods of economic growth and contraction, which can be measured by changes in real GDP.

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3
Q

civilian labor force

A

The number of people 16 years of age and older who are employed or who are actively seeking a job, excluding armed forces, homemakers, discouraged workers, and other persons not in the labor force.

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4
Q

coincident indicators

A

Variables that change at the same time that real GDP changes.

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5
Q

cyclical unemployment

A

Unemployment caused by the lack of jobs during a recession.

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6
Q

discouraged worker

A

A person who wants to work, but who has given up searching for work because he or she believes there will be no job offers.

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7
Q

economic growth

A

An expansion in national output measured by the annual percentage increase in a nation’s real GDP.

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8
Q

frictional unemployment

A

Unemployment caused by the normal search time required by workers with marketable skills who are changing jobs, initially entering the labor force, reentering the labor force, or seasonally unemployed.

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9
Q

unemployment

A

jobs, initially entering the labor force, reentering the labor force, or seasonally unemployed.

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10
Q

full employment

A

The situation in which an economy operates at an unemployment rate equal to the sum of the frictional and structural unemployment rates, also called the natural rate of unemployment.

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11
Q

GDP gap

A

The difference between actual real GDP and potential or full employment real GDP.

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12
Q

lagging indicators

A

Variables that change after real GDP changes.

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13
Q

leading indicators

A

Variables that change before real GDP changes.

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14
Q

peak

A

The phase of the business cycle in which real GDP reaches its maximum after rising during a recovery.

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15
Q

recession

A

A downturn in the business cycle during which real GDP declines, and the unemployment rate rises. Also called a contraction.

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16
Q

recovery

A

An upturn in the business cycle during which real GDP rises. Also called an expansion.

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17
Q

structural unemployment

A

Unemployment caused by a mismatch of the skills of workers out of work and the skills required for existing job opportunities.

18
Q

trough

A

The phase of the business cycle in which real GDP reaches its minimum after falling during a recession.

19
Q

unemployment rate

A

The percentage of people in the civilian labor force who are without jobs and are actively seeking jobs.