economic fluctuations and unemployment

Question 1

recession d

Answer 1

negative growth in the economy where growth has been negative for at least two quarters

Question 2

unemployed d

Answer 2

situation in which a person who is able and willing to work is not employed

Question 3

labour force d

Answer 3

number of people who are or wish to be in paid employment (includes employed and unemployed)

Question 4

participation rate equation

Answer 4

labour force / population of working age

Question 5

unemployment rate d

Answer 5

ratio of number of the unemployed to the total labour force

Question 6

unemployment rate equation

Answer 6

unemployed / labour force

Question 7

employment rate d

Answer 7

ratio of the number of employed to the population of working age

Question 8

employment rate equation

Answer 8

employed / population of working age

Question 9

okun’s law d

Answer 9

changes in the rate of growth of gdp are negatively correlated with the rate of unemployment

Question 10

aggregate output d

Answer 10

the total output in an economy

Question 11

aggregate demand d

Answer 11

total demand for goods and services in the economy C+I+G+X-M

Question 12

weakness of will d

Answer 12

inability to commit to a course of action (dieting for example)

Question 13

capacity utilisation rate d

Answer 13

measure of the extent to which a firm is producing as much stock of its capital goods as current knowledge would allow

Question 14

inflation d

Answer 14

increase in the general price level

Question 15

deflation d

Answer 15

decrease in the general price level

Question 16

consumer price index d

Answer 16

measure of the general level of prices that consumers have to pay for goods and services

Question 17

exports d

Answer 17

goods and services sold to households, firms and governments in other countries

Question 18

imports d

Answer 18

Goods and services produced in other countries and purchased by households, firms and the government