Chapter 13 Vocab

Question 1

systematic changes in real GDP marked by alternating periods of expansion and contraction

Answer 1

Business Cycles

Question 2

growth path the economy would follow if it were not interrupted by alternating periods of recession and recovery

Answer 2

Trend Line

Question 3

explanation that prices rise because all sectors of the economy try to buy more goods and services than the economy can produce

Answer 3

Demand-Pull Theory

Question 4

currency issued by towns, chambers of commerce and other civic bodies during the Great Depression

Answer 4

Depression Scrip

Question 5

sustained rise in the general level of prices of goods and services

Answer 5

Inflation

Question 6

state of the economy with large numbers of unemployed, declining real incomes, overcapacity in manufacturing plants, and in general economic hardship

Answer 6

Depression

Question 7

explanation that rising input costs, especially energy and organized labor, drive up the cost of products for manufacturers and thus cause inflation

Answer 7

Cost-Push Theory

Question 8

workers who have been unemployed for 27 weeks or more

Answer 8

Long-Term Unemployed

Question 9

non-institutionalized part of the population, aged 16 and over, either working or looking for a job

Answer 9

Civilian Labor Forces

Question 10

relatively low rate of inflation usually 1 to 3% annually

Answer 10

Creeping Inflation

Question 11

persons or institutions to whom money is owed

Answer 11

Creditors

Question 12

unemployment caused by workers changing jobs or waiting to go to new ones

Answer 12

Frictional Unemployment

Question 13

decline in real GDP lasting at least 2 quarters or more

Answer 13

Recession

Question 14

hiring outside firms to perform non-core operations to lower operating costs

Answer 14

Outsourcing

Question 15

persons or institutions that owe money

Answer 15

Debtors

Question 16

unemployment caused by technological developments or automation that make some workers’ skills obsolete

Answer 16

Technological Unemployment

Question 17

sustained decrease in the general level of the prices of goods and services

Answer 17

Deflation

Question 18

state of working for less than 1 hour per week for pay/profit in a non-family owned business while being available and having made an effort to find a job during the past month

Answer 18

Unemployed

Question 19

abnormal inflation in excess of 500% per year, last stage of monetary collapse

Answer 19

Hyperinflation

Question 20

unemployment caused by a fundamental change in the economy that reduces the demand for some workers

Answer 20

Structural Unemployment

Question 21

Unemployment directly related to swings in the business cycle

Answer 21

Cyclical Unemployment

Question 22

unemployment caused by annual changes in the weather or other conditions that prevail at certain times of the year

Answer 22

Seasonal Unemployment