3.1.2 test Flashcards
what are the 3 types of unemployment
Structural, frictional, cyclical
what is the natural rate of unemployment in the united states?
4-6%
which unemployment type occurs when someone is just entering the labor market or is changing jobs
frictional
which unemployment types occurs when a job becomes obsolete due to knew technology?
structural
which unemployment is created based on a recession?
cyclical
what are the 3 most important factors that influence day to day decisions about finances?
Personal values, life situations, economic factors
what are 4 examples of life situations that will change your personal financial planning?
marriage, kids, educations, moving communities, new job
what are 4 economic factors that impact our economy and your personal financial planning?
market forces, global influences, financial institutions, economic conditions.
what are the forces that determine the price of products you purchase?
supply and demand.
what usually happens to supply and demand if the price for a product is increasing?
demand is high, supply is low.
what do financial institutions do with the money that you deposit into them?
issue loans out with that money
what is the main responsibility of the fed?
to regulate interest rates
how does global competition impact our economy in the US?
if more $ is going out than staying in, we have less for spending and investing, which would hurt our economy, creating more unemployment and higher interest rates
what are 3 economic conditions that impact our personal financial decisions
consumer prices, consumer spending, interest rates.
what is the main cause of inflation
increase in demand, decrease in supply
