Chapter 30

Question 1

labour force

Answer 1

The labor force refers to those people between the ages of
18- 65 who are willing and able to work.

Question 2

unemployment

Answer 2

Unemployment refers to those people who are willing to work
but are unable to find work.

Question 3

unemployment rate

Answer 3

The unemployment rate is the percentage of the labour force
that is unemployed.

Question 4

inflation

Answer 4

Inflation occurs when there is an increase in the general level
of prices from one year to the next

Question 5

consumer price

Answer 5

The consumer price index is the official measure of inflation
in Ireland.

Question 6

interest rates

Answer 6

Interest rates represent the cost of borrowing money. □

Question 7

economic output

Answer 7

Economic output is the total financial value of all the goods
and services produced in an economy. \ □

Question 8

GDP

Answer 8

Gross domestic product (GDP) measures th’e financial value
of goods and services produced in an economy in one yea

Question 9

economic growth

Answer 9

Economic growth measures the percentage change in GDP
from one year to .the next

Question 10

economic boom

Answer 10

An economic boom occurs when the level of economic activity
increases very quickly.

Question 11

reccesion

Answer 11

A recession occurs when economic growth ceases or becomes
negative

Question 12

depression

Answer 12

Is a severe and prolonged period of economic decline

Question 13

business cycle

Answer 13

The business cycle refers to the fluctuations in economic