Competency 2.4 - analyze how macroeconomic factors influence the performance of economic systems Flashcards
gross domestic product (GDP)
the total money value of final goods and servicesthat a country produces over a given period of time, usually a year
consumption (C)
the total amount of goods and services bought by business and individuals
investment (I)
the total amount of investment items bought by businesses and individuals
net exports (NX)
the difference between the goods bought by people outside the country and the goods people in the country bought from outside countries
aggregate supply
national output of goods and services produced
aggregate demand
national output of goods and services purchased and consumed
boom
an expansion of the economy that brings prosperity
recession
a contraction of the economy with a decline in GDP and a rise in unemployment
trough
the turning point in an economic cycle; a period in which there is a slide from the mean to the lowest point in a recession
recovery
a period in which there is a rise from the trough back to the mean and during which there is lessening unemployment and rising prices
surplus
when sellers make too many goods and there are not enough buyers for those goods
frictional unemployment
type of unemployment that occurs when workers voluntarily move from one job to another for any reason with time-in between employments
cyclical unemployment
type of unemployment that occurs when the exonomy falls as the result of a recession; busniness often survive by laying off workers to avoid cutting salaries and prices
functional unemployment
when there are more workers than jobs OR when workers skills are not in demand or match industry needs
inflation rate
the rate at which prices rise
