Econ Chapter 13

Question 1

The ups and downs of Real GDP

Answer 1

Business Cycles

Question 2

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

Answer 2

Depression

Question 3

Relatively low rate on inflation, usually 1 to 3 percent annually

Answer 3

Creeping Inflation

Question 4

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

Answer 4

Structural Unemployment

Question 5

Unemployment directly related to swings in the business cycles

Answer 5

Cyclical Unemployment

Question 6

Is a kind of unemployment that is caused when workers with few skills are replaced by machines that do their jobs

Answer 6

Technological Unemployment

Question 7

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

Answer 7

Seasonal Unemployment

Question 8

Decline in real GDP lasting at least two quarters or more

Answer 8

Recession

Question 9

Point in time when real GDP stops declining and begins to expand

Answer 9

Trough

Question 10

macroeconomic expression used to describe how the economy is expected to perform in the future

Answer 10

Econometric Model