The Money Pie
Unemployment caused by workers who are between jobs for one reason or another
What is Frictional Unemployment?
What does GDP stand for?
Gross Domestic Product - The total value of goods produced and services provided in a country
What is the phase of a business cycle that occurs after a trough and before a peak?
What is Expansion?
The activities of the Federal Reserve are controlled and coordinated by _____.
What is the Fed's board of governors?
Unemployment that occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills
What is Structural Unemployment?
An increase in the price of goods and services over time (2-3% is the target rate).
What is inflation?
This occurs when there is no growth in GDP for two consecutive quarters.
What is a recession?
The major policy-making group within the Federal Reserve System.
What is the FOMC?
The minimum amount of reserves a bank must hold against its deposit, as mandated by the Fed.
What is the reserve requirement?
Unemployment resulting from changes in the weather or changes in the weather or changes in the demand for certain products
What is Seasonal Unemployment?
A statistical estimate constructed using the prices of a sample of representative items (e.g. milk and gas) whose prices are collected periodically.
What is the consumer price index (CPI)?
The highest point of real GDP.
What is the peak?
Unemployment directly depending to the swings, and changing of business and economics
What is Cyclical Unemployment?
What is considered low inflation and good for the economy?
1-5%
The lowest point in the trend line. Also referred to as the "turn around" point.
What is trough?
Jackie has been working in northern Michigan mowing grass at the local golf course. With the onset of winter, Jackie is most likely to experience:
Seasonal Unemployment
What does CPI stand for?
Consumer Price Index
A state where a large number of people are out of work and there are acute shortages.
What is depression?