Macroeconomics
a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.
What is Microeconomics?
Jamie is a lifeguard at Myrtle Beach State Park. The tourist season ends on September 30, and she is told that her services are no longer needed until the following March. She will not have another job during this time.
What is Seasonal Unemployment?
Long-term economic downturn that usually features high levels of poverty.
What is a Depression?
An unintended consequence caused by an individual or company's actions.
Unlimited Wants and Limited Resources
What is Scarcity?
is a branch of economics that examines topics such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment.
What is Macroeconomics?
Chris has not been happy with the working conditions at his part-time job with a fast food restaurant. He has put in his two weeks’ notice to leave the restaurant and does not plan to wait until he finds a new job to officially leave.
What is Frictional Unemployment?
A period of decline in economic activity. Typically requires two or more quarters with negative GDP growth
What is a Recession?
An unintended benefit caused by an individual or company's actions.
What is a Positive Externality?
When a few large firms control the market
What is an Oligopoly?
when the economy is in a state of sustained decrease in price levels
What is Deflation?
Lisa worked as a skilled assembly line technician at a car manufacturing plant. As the company modernized, they automated most production with advanced robotics. Lisa's skills in manual assembly became obsolete and she was laid off.
What is Structural Unemployment?
Issues federal currency and is responsible for monetary policy within the United States.
What is the FED (or federal reserve)?
a key economic indicator that measures the total monetary value of all final goods and services produced within a country's borders within a year.
What is Gross Domestic Product (GDP)?
Price and Demand have an inverse relationship when Price increases Demand Decreases.
What is the Law of Demand?
all people over the age of 16 who are either working for pay or actively seeking employment
People who are not employed or are not seeking work are not considered part of this
What is the Labor Force?
During Covid-19 as companies struggled to make a profit several employees were let go. After the pandemic many of these laid off workers were welcomed back to the work force.
What is Cyclical Unemployment?
This is typically referred to as Reaganomics (after President Reagan), where money given to businesses works its way down to the benefit of the employees.
What is Trickle-Down-Economics?
GDP adjusted for inflation, is often used to gauge the standard of living, allowing for comparisons between different countries or regions.
What is Real GDP?
when slow economic growth and joblessness coincide with rising inflation
What is Stagflation?
Large and fast increases in the overall price levels of goods.
What is Hyperinflation?
When there is still unemployment, but everybody who WANTS a job has a job.
A free trade agreement passed under Bill Clinton in the 1990s and overturned by Donald J. Trump in 2018.
North American Free Trade Agreement (NAFTA)
most commonly-used instrument for measuring inflation
What is the Consumer Price Index (CPI)?
All of these are examples of what?
Free Trade Agreements
the use of the internet and shared shipping routes
collaboration among countries
Tariffs/Foreign Trade
What is Globalization?