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Chapter 19 Key Terms
Chapter 19 Main Ideas
Chapter 20 Key Terms
Chapter 20 Main Ideas
100
Percentage increase in the price level from one year to the next
Inflation
100
How is total production measured?
GDP
100
Short term unemployment that arises from the process of matching workers with jobs
Frictional unemployment
100
Three types of unemployment
Cyclical, Structural, and Frictional
200
Final Good/Service
good or service purchased by a final user
200
Difference between real GDP and nominal GDP
Real GDP is the final goods and services evaluated at base-year prices. Nominal GDP is final goods and services evaluated at current year prices
200
Unemployment arising from a persistent mismatch between the skills and attributes of workers and the requirements of jobs
Structural unemployment
200
How to compute inflation rate?
Take last years value and divide it by this year, then times by 100 to see the percentage increase
300
Buying and selling of goods/services that is concealed from the government to avoid taxes or regulations or because the goods and services are illegal
Underground economy or Black Market
300
The nominal interest rate minus the inflation rate
Real interest rate
300
Difference between Nominal and Real interest rate
One includes the inflation rate in calculations
400
Exports minus imports
Net Exports
400
The stated interest rate on a loan
Nominal interest rate
400
What determines the unemployment rate?
Efficiency wages, Minimum wage, Insurance for unemployed, and Labor unions
500
A good or service that is an input into another good or service
Intermediate good or service
500
Average of the prices of the goods/services purchased by a typical urban family of four
Consumer price index CPI