Ch 12&13

Question 1

An income level below which income is insufficient to support

Answer 1

poverty threshold

Question 2

The percentage of people who live in households that have an income below the poverty line

Answer 2

poverty rate

Question 3

The annual income earned by individuals and firms

Answer 3

Gross National Product

Question 4

Ability to purchase goods and services

Answer 4

purchasing power

Question 5

A steady long-term increase in Real GDP

Answer 5

Economic Expansion/Growth

Question 6

The total amount of goods and services at all possible costs

Answer 6

Aggregate Supply

Question 7

The decline in real GDP combined with the rise of prices

Answer 7

stagflation

Question 8

Prolonged economic contraction

Answer 8

recession

Question 9

Process of increasing the amount of capital per work

Answer 9

Capital Deepening

Question 10

Total value of all goods and services

Answer 10

GDP

Question 11

The percentage rate of change of price level over time

Answer 11

Inflation rate

Question 12

when you are working a job that you are overqualified for

Answer 12

underemployed

Question 13

When there is a general rise in prices

Answer 13

inflation

Question 14

This is a number of goods in an economy that will be purchased

Answer 14

aggregate demand

Question 15

The index that is used to measure inflation

Answer 15

Consumer Price Index

Question 16

types of unemployment

Answer 16

Seasonal
Frictional
Structural
Cyclical

Question 17

The highest point for GDP

Answer 17

peak

Question 18

One thing that can affect the business cycle of an economy

Answer 18

External Shocks

Question 19

Realistic Unemployment rate for a good economy

Answer 19

5%

Question 20

One of the root causes of poverty

Answer 20

Race

Question 21

One of the causes of inflation

Answer 21

Too much money

Question 22

The best way to measure GDP

Answer 22

Real GDP per capita

Question 23

Unemployment that happens when the economy goes up and down

Answer 23

Cyclical Unemployment

Question 24

Which type of GDP is measured in the current prices

Answer 24

Nominal

Question 25

When the economy hits its lowest points

Answer 25

Trough

Question 26

Unemployment when industries slow or shut down during seasons

Answer 26

Seasonal

Question 27

Another cause for poverty

Answer 27

Women

Question 28

Capital deepening leads to what

Answer 28

Standard of Living

Question 29

When the economy is shrinking in the business cycle

Answer 29

Contraction