Econ Unit 4 PT Flashcards
Businesses Send __________ to the Resource Market.
Expenditures
The Government Sends __________ to Households.
Goods & Services
The Product Market Sends __________ to Businesses
Revenue
Households Send __________ to the Government.
Taxes
The Resource Market Sends __________ to Households
Income
the Tendency of People to Respond to Rising Prices by Buying Cheaper Substitutes of the Particular Good, Skewing the CPI Calculation because it Measures Spending By the Higher-Priced Product and does NOT Account for Substitution
Commodity Substitution Effect
Failure to Represent the Greater Value of New Goods in The CPI Index
New Goods Effect
the Tendency to Buy Normal Goods at Reduced Prices through places like Outlet Centers or Online Shopping, Skewing the CPI Calculation because it Only Measures the Regular Price of Goods
Outlet Substitution Effect
Failure to Represent Changes in the Quality of Goods in the CPI Index
Quality Change Effect
the Loss Of Jobs that is Congruent With the Business Cycle and It’s Fluctuations
Cyclical Unemployment
the Result of the Natural Turnover of Workers Entering and Leaving the Work Force or Changing Jobs for Reasons Other than Being Fired or Laid off
Frictional Unemployment
the Result of Losing Work because the Work Associated with a Particular Time of the Year
Seasonal Unemployment
the Result of Changes in Technology or in Competition that Makes some Jobs Obsolete or Changes Them to the Degree that New Skills are Required
Structural Unemployment
due to Inflation and Unemployment Rising at the Same Time
Stagflation
due to Government Mismanagement
Structural Theory
