Job status
What is the percentage of people not working, but are at least 16 years old and are actively looking for work.
unemployment rate
What are price increases of about 2% per year, which is preferred in an economy?
Price stability
A decline in real GDP that lasts at least two consecutive quarters with an increase in unemployment is called what?
recession
What is the term used for the total dollar value of all final goods and services produced in one country in one year?
Gross Domestic Product
What is a federal health-care program for senior citizens regardless of income?
Medicare
Which decade did a depression last occur in the United States?
1930s
What are fluctuations in the economy between expansions and contractions over time?
Business cycle
What type of unemployment is caused by workers changing jobs or waiting to start new ones?
frictional unemployment
A decrease in the general level of prices of goods and services is called what?
Deflation
Changes in business investment
Impact of interest rates
Consumer expectations
items that drives business cycles
What are ways with newer and improved items to create more output with the same or fewer inputs such as labor?
Technological progress
What is a healthcare program run jointly by federal and state agencies for people of low incomes?
Medicaid
What is the name of the most used price index in the United States, which shows prices of a representative sample of frequently used consumer items?
Consumer Price Index
People who are actively looking for work, but are not currently working are considered what?
Unemployed
What type of unemployment is caused by changes in the business cycle?
cyclical unemployment
Inflation of 500% a year and worse is called what?
Hyperinflation
A period of economic growth measured by a rise in real GDP is called what?
expansion
What is the difference between real GDP and current GDP
Real GDP is GDP adjusted for inflation and current GDP is GDP measured in current prices
What is the income level below which income is insufficient to support a family or household?
poverty threshold
What is collecting and organizing macroeconomic statistics to monitor the strength of the economy?
National income accounting
Who are people aged 16 or older who either have a job or are actively looking for a job if they don’t have one?
Labor force
What type of unemployment is unemployment due to either a change in government policy or a mismatch between your skill set or those needed by employers?
structural unemployment
What is high inflation during a recession is called?
Stagflation
What has been the trend with business cycles over the past few decades?
Expansions in the business cycle have been much longer and recessions have been much shorter
What is the total amount of goods and services available at all prices levels?
aggregate supply
Which program is available to help those with low incomes buy food.
food stamp program
The representative combination of goods and services used to make a price index is called what?
Market basket
A very severe recession for a long period of time is called what?
Depression
If you are age 17 and don’t have a job because you don’t have time to work right now, are you considered unemployed?
No, you are not part of the labor force since you are not looking for a job
What is inflation that occurs because the economy is trying to produce more goods than it is capable of producing is called
Demand-pull inflation
Question 63 is an an example of what
recession
What is the total amount of goods and services that will be purchased at all price levels?
aggregate demand
What is a refundable tax credit that low-income families with children receive when they file taxes?
Earned Income Tax Credit
Why are savings important?
This money can be used for businesses to borrow for investment spending
What is an increase in the general level of prices of goods and services?
Inflation
If you are 30 years old and are working as a greeter at WalMart, but have a masters’ degree in Engineering, you are considered:
Underemployed
What is the process by which rising wages cause rising prices and then back-and-forth between the two?
Wage-price spiral
Question 64 is an an example of what
Trough
Measuring GDP as equal to consumption + investment + government spending + net exports is called what?
expenditure approach
Life expectancy
Overall happiness
Infant mortality
Items other than real GDP per capita that helps determine quality of life
Real GDP divided by the population of a country
real GDP per capita
What is the level of unemployment when there is no cyclical unemployment, usually around 4-5%?
full employment
What is unemployment that occurs due to the end of a job that occurs only during certain time of year?
seasonal unemployment
What is inflation when costs such as energy and organized labor drive up the cost of products?
Cost push inflation
Question 65 is an an example of what
Expansion
used goods
intermediate goods
goods sold in an underground economy
Items not included in GDP
Why are those on fixed incomes hurt by inflation?
Because their incomes did not change when prices changed.
What is the difference between durable and nondurable goods?
Durable goods are items that last for a relatively long time like appliances while nondurable goods are items that last for a relatively short period of time like food
What is the percentage rate of change in price level over time?
inflation rate
What is the name of those who would like to work, but have given up looking?
Discouraged workers
Too fast of growth in the money supply will likely lead to what?
inflation
Question 66 is an an example of what
Peak
consumer spending by households
investment spending by businesses of machinery, tools, and buildings
government spending of goods and services
Items included in GDP
How does population growth affect countries?
Having more people means needing more items
What is a set of economic variables that provide data to predict changes in the business cycle
Leading indicators
What is a steady increase in real GDP over a period of time?
Economic growth