macro ch 6 good Flashcards
1
Q
is the weighted average of the prices of all goods and services in an economy.
A
price level
2
Q
Economists measure the price level by a ________
A
price index
4
Q
A negative % change in prices is called
A
deflation
5
Q
A Decline in the rate of inflation from one year to another is called
A
disinflation
6
Q
An unexpectedly high inflation is called____________
A
hyperinflation
7
Q
5 types of unemployment
A
Types of Unemployment Frictional, Structural, Cyclical, Natural, and Actual unemployment
8
Q
% change in prices formula?
A
100 x [(CPI later year ? CPI earlier year) / (CPI earlier year)]
9
Q
annual inflation formula
A
positive % change in prices of two years in a row which indicates an increase in the price level.
