Business Cycles
This phase of the business cycle is characterized by the highest level of economic activity.
Peak
A prolonged economic contraction lasting at least 6 months is called this.
Recession
This term describes a decline in real GDP combined with rising inflation.
Stagflation
This phase of the business cycle typically has the highest unemployment.
Trough
This event caused economists to reconsider the idea that economies recover quickly on their own.
The Great Depression
This measures the total value of goods and services produced in a year.
Gross Domestic Product (GDP)
his component of GDP measures the money spent by individuals on goods and services like food, clothes, and entertainment.
Consumption
Real GDP accounts for this, unlike Nominal GDP
Inflation
What does the X stand for in the GDP formula: C + I + G + (X - M)
Exports
This resource, such as new machinery or factories, when increased per worker, boosts economic growth by improving productivity.
Physical Capital
This is a leading indicator used to predict business cycles.
Stock Market
This index tracks changes in the cost of a market basket of goods.
Consumer Price Index (CPI)
This percentage, reported monthly, shows the proportion of the labor force actively seeking work but unable to find jobs.
the unemployment rate
A sudden increase in oil prices is an example of this type of shock.
External Shock
The business cycle is primarily measured by increases or decreases in this.
GDP
This type of unemployment is caused by changes in the business cycle.
Cyclical Unemployment
The unemployment rate is calculated by dividing unemployed persons by this.
Civilian Labor Force
A depression differs from a recession because it is this.
Longer and More Severe
This type of unemployment occurs between jobs or when entering the workforce.
Frictional Unemployment
This type of unemployment results from a mismatch of skills or location.
Structural Unemployment
This phase of the business cycle is characterized by rising unemployment, declining consumer spending, and a slowdown in economic growth, often following a peak.
contraction (or recession)
This can cause a rightward shift in the Production Possibilities Frontier (PPF).
Technological Advances
This contributes to economic growth by improving workforce skills.
Increase in Human Capital
Real GDP per capita is a better measure of living standards because it accounts for this
Population Size
This measure of economic growth adjusts GDP for inflation, showing the real increase in the value of goods and services produced over time.
Real GDP