Chapter 15
The market value of all final goods and services produced in a nation during a period of time, usually a year
What is GDP (Gross Domestic Product)?
The totl income earned by resource owners, including wages, rents, interest, and profits . . .
What is national income?
Alternating periods of economic growth and contraction, which can be measured by changes in real GDP
What is the business cycle?
An expansion in national output measured by the annual percentage increase in a nation's real GDP
What is economic growth?
A person who wants to work but has given up searching for work because he or she believes there will be no job offers
What is a discouraged worker?
Finished goods and services produced for the ultimate user
What are final goods?
The total income received by households that is available for consumption, saving, and payment of personal taxes
What is personal income?
The phase of the business cycle in which real GDP reaches its maximum after rising during a recovery
What is peak?
Variables that change before real GDP changes
What are leading indicators?
Temporary unemployment caused by the time required of workers to move from one job to another
What is frictional unemployment?
A diagram showing the exchange of money, products, and resources between households and businesses
What is the circular flow model?
The amount of income that households actually have to spend or save after payment of personal taxes
What is disposable personal income?
A downturn in the business cycle during which real GDP declines, and the unemployment rate rises. Also called a contraction
What is a recession?
Name 1 leading indicator
What is:
Average workweek, unemployment claims, new consumer goods orders, delayed deliveries, new orders for plant and equipment, new building permits, stock prices, money supply, interest rates, consumer expectations?
Unemployment caused by a mismatch of the skills of workers out of work and the skills required for existing job opportunities
What is structural unemployment?
A rate of change in a quantity during a given period, such as dollars per year . . .
What is flow?
The value of all final goods produced during a given time period based on the prices existing in a selected base year
What is real GDP?
The phase of the business cycle in which real GDP reaches its minimum after falling during a recession
What is a trough?
The percentage of people in the civilian labor force who are without jobs and are actively seeking jobs
What is the unemployment rate?
The practice of a company having its work done by another company in another country
What is outsourcing?
A quantity measured at one point in time
What is stock?
What does GDP stand for
What is Gross Domestic Product?
An upturn in the business cycle during which real GDP rises. Also called a recovery
What is an expansion?
The number of people 16 and older who are employed or who are actively seeking jobs. Does not include the armed forces, homemakers, discouraged workers and others not in the labor force
What is the civilian labor force?
Unemployment caused by the lack of jobs during a recession
What is cyclical ?unemployment