ABC, 123, GDP
GDP measures the total monetary amount of goods produced annually. . .
. . .Within the geographical borders of a country.
When there is inflation, high unemployment, and no economic growth, this is what the economy experiences.
Stagflation.
Inflation at an annual rate of 1-3 percent is considered good. There is a name for it.
Creeping inflation.
Besides not having a job, there is another important criterion for somebody to count as unemployed.
Looking for a job.
At this point in the business cycle, GDP will not continue to increase.
Peak.
There is a point in the business cycle when GDP no longer decreases and begins to increase.
Trough.
Inflation at an annual rate of 500 percent or more is considered disastrous and is called. . .
When dollars are worth less each year, they can be said to have reduced. . .
Purchasing power.
When the price of retail products across Washington state increases, many residents begin to campaign for another minimum wage increase. This phenomenon has a name.
Wage-price spiral.
This is the opposite of inflation and also a negative thing.
Deflation.
If real GDP is increasing year-by-year, an external shock such as a natural disaster would lead to this phase of the business cycle.
Contraction/Recession.
Inflation is difficult on everyone, but especially on those who. . .
If prices continue to rise, goods sold now could be worth more later. There is a term for trying to capitalize on this.
Speculation.
When the government shuts down military bases, it results in a particular type of unemployment.
Structural.
If anyone benefits from inflation, it is those who. . .
Owe money.
After this historical event, recessions became shorter and periods of expansion became longer.
WWII
Virtually every child wants a donkey as a pet. There are not enough donkeys for them all. The price of donkeys increases. This leads to a particular type of inflation.
Demand-pull.
Inflation can result from wars and/or natural disasters. Higher expenses cause firms to increase their prices.
Cost-push.
Technological unemployment is a specific variety of another type of unemployment.
Structural unemployment.
This index uses a 'market basket' of commonly purchased items to measure inflation.
Consumer Price Index (CPI)
When business cycles are illustrated, gray vertical bars across the graph bars represent. . .
Contractions/Recessions.
Some people might say that reduced purchasing power is a cause of inflation. This is untrue. It is actually. . .
An impact of inflation.
This describes a pattern when consumers, impacted by inflation in one area (such as clothing), cut expenses in another area (such as auto repair).
Distorted Spending Patterns.
Categorize the following as employed, unemployed, or uncounted: Stay-at-home parents; Farm workers; Retired firefighters; Laid-off fast food workers applying to MetalTech; Auto salespersons.
Uncounted; Employed (CLF); Uncounted; Unemployed; Employed (CLF)
This is the key difference between structural and cyclical unemployment.
A contraction/recession.