Business Cycles
Systematic Changes in Real GDP marked by alternating period of expansion and contraction
Business Cycles
Sustained Rise in the general level of prices of goods and services
Inflation
State of working for less than one hour per week for pay while being available and having made an effort to find a job during the past month
Unemployed
Decline in Real GDP lasting at least 6 consecutive months
Recession
Representative collection of goods and services used to compile a price index
Market Basket
Non-institutionalized part of the population, aged sixteen and over, either working or looking for a job
Civilian labor force
Point in time when Real GDP stops declining and begins to expand
Trough
Index used to measure price changes for a market basket of frequently used consumer items
Consumer Price Index (CPI)
Long-term unemployed
Growth path the economy would follow if it were not interrupted by alternating periods of recession and recovery
Trend Line
Inflation Explanation that states that prices rise because sectors of the economy try to buy more goods and services than the economy can produce
Demand-Pull Inflation
Unemployment caused by a fundamental change in the economy that reduces the demand for some workers
Structural Unemployment
Statistical series used to predict recessions. Normally turns down before the economy turns down or turns up before the economy turns up
Leading Economic Indicator
Inflation explanation that states that rising input costs drive up the cost of products for manufacturers and thus cause inflation
Cost-Push Inflation
Difference between what the economy can and does produce
GDP gap