GDP
What is gross domestic product?
This phase of the business cycle is strongly associated with a rise in the unemployment rate.
What is recession?
Poverty and wealth gaps mostly come from massive differences between this type of personal earnings.
What is income
This refers to people who technically are employed but have very few hours and could theoretically be working more.
What is underemployment?
This is the opposite of inflation, where all prices fall.
What is deflation?
This term means "per person" and is a way to look at the distribution of GDP across a population
What is per capita
GDP falls during this phase of the business cycle
What is a recession?
This special type of graph is used to compare income inequality across countries
What is a Lorenz curve?
This simple division is the formula used to find the unemployment rate
# Unemployed people / Labor Force
This is the name of the most commonly used American inflation tracking index
what is CPI
This is what is accounted for mathematically when economists use the phrase "real GDP"
What is inflation?
This refers to the lowest point during a recession and is also the point at which the cycle swaps back to expansion.
What is the trough
This demographic is most likely to experience poverty due to generally being unable to support themselves with an income.
What are young people/children
This type of unemployment occurs when workers are between jobs, is often short term and by choice.
What is frictional unemployment?
This term refers to the ability of money to actually buy items.
What is purchasing power?
These are the only products counted in GDP in order to avoid double-counting.
What are final products?
Inflation is typically connected with this phase of the business cycle.
What is expansion?
This value represents the difference between perfect income equality and the real income distribution; the higher it is, the more inequality exists.
What is the GINI index
In the United States, this is the largest group of people with jobs who are excluded from labor force counts.
What is the military?
This type of inflation occurs when there are supply shocks, or increased prices for business's input products.
what is cost push inflation?
This formula calculates GDP by accounting for all sectors that buy final products.
what is GDP = C + I + G + (Exports - Imports)
The inflationary and unemployment effects of the businesses cycle occur due to changing incomes, leading to a rise or fall in this in the markets for all products
what is demand?
This is the official poverty line for an individual in the US
~16000 (15960)
This type of unemployment is most common in Florida and other places with high tourism - but only during part of the year
What is seasonal unemployment?
This type of inflation occurs as a result of workers and business owners constantly trying to increase their relative earnings.
What is the wage-price spiral?