Vocab
a set of statistics that allows economists to compare prices over time
Price Level
Cash readily available to be used only in the event of an emergency
Emergency Fund
GDP that has been adjusted for price changes in the market is considered...
Real GDP
What is one classification in order to be considered "employed"?
- worked without pay for a family business 15 hours or more
- work for pay or profit one or more hours
- have job but did not work due to illness, weather, vacation, labor dispute
decrease in the average price level of all goods and services in an economy
deflation
the total dollar value of all final goods and services produced within a country during one calendar year
Gross Domestic Product
a measure of an individual's credit risk
Credit Score
GDP expressed in the current prices of the period being measured
Nominal GDP
fluctuations in employment based on seasons
Seasonal Unemployment
What are two of the five characteristics of money?
Durability, Portability, Divisibility, Stability, Acceptability
increase in the average price level of all products in an economy
Inflation
interest rate charged to a customer during the early stages of a loan
Introductory Rate
The C in the Output Expenditure Model represents what part of the equation?
Personal Consumption Expenditures
when workers are moving from one job to another
Frictional Unemployment
the total value of all capital goods produced in a given nation for one year as well as changes in the dollar value of business inventories is known as...
Gross Investment
total amount of spending by individuals and businesses throughout the economy
Aggregate Demand
Cost of borrowing money on an annual basis
Annual Percentage Rate
The G in the Output Expenditure Model represents what part of the equation?
Government Purchases
Occurs as a result of changes in technology or in the way the economy is structured
Structural Unemployment
Businesses being unable to keep up with the demand of the consumers is an example of...
Demand-Pull Inflation
total amount of goods and services produced throughout the economy
Aggregate Level
saving money over time for a large purchase
Sinking Fund
What is one pitfall of GDP?
- accuracy and timeline of data
- nonmarket activities
- underground economies
resulting from recessions and economic downturns
Cyclical Unemployment
prices rising above what consumers are willing and able to purchase them for is an example of...
Cost-Push Inflation