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The regular ups & downs of real gdp
Business Cycles
General direction of the economy over an extended period of time
Trend line
Commonly purchased consumer goods/services that are used to track inflation
Market Basket
Type of inflation that occurs when the cost of production causes businesses to raise prices.
Cost-push inflation
Mismatch between skills and skills employers need
Structural Unemployment
From peak to trough-declining GDP
Recession
Prolonged downturn in economic growth
Depression
A steady & slow rise in the price of goods
Creeping Inflation
Extends credit to another person
Creditors
Involves hiring a party outside of the business
Outsourcing
Highest point of a business cycle
Peak
Results in a decrease of purchasing power of money
Inflation
Often defined as the country's currency losing it's value at about 50% per month
Hyperinflation
A legal entity that owes something to a person or business
Debtors
Result of a downturn in the business cycle
Cyclical Unemployment
Where a period of decline ends
Trough
Occurs when there is a decrease in demand or an increase of supply
Deflation
Triggered by negative supply shock
Stagflation
Includes people 16 years or older who are employed or unemployed
Civilian Labor Force
# of unemployed people/total # of people in the labor force x 100=
Unemployment rate
Period of business cycle marked by economic growth
Expansion
Used to measure inflation
Too much money chasing too much goods
Demand-pull inflation
Moving from one job to another
Frictional unemployment
Labor decreases during certain times of the year
Seasonal Unemployment