Unit 13: Business Cycle Flashcards

1
Q

the branch of economic theory that studies the behavior and decision making of an overall economy by focusing on economic perfromance

A

Macroeconomics

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2
Q

statistical tools that provide info about the current performance of the economy

A

Economic Indicators

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3
Q

point to future changes in the economy

A

leading indicators

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4
Q

usually come after the economy changes

A

lagging indicators

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5
Q

provide valuable information about the current state of the economy within a particular area because they happen at the same time as they change signal

A

coincident indicators

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6
Q

the total market value of all final goods and services produced within a countrys borders during a 12 month period, and is used to measure a nations economic growth

A

GDP

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7
Q

an inflation adjusted measure that reflects the value of all goods and services produced by an economy in a given year

A

real GDP

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8
Q

an economic metric that breaks down a countrys economic output per person

A

GDP Per Capita

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9
Q

measures the overall change in consumer prices based on a representative basket of goods and services overtime

A

Consumer Price Index (CPI)

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10
Q

non institutionalized persons aged 16 or over either working or looking for a job (excluding miltary)

A

the labor force

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11
Q

calculated each month by the Bureau of Labor Statistics. it is the ratio of unemployed individuals divided by the total number of persons in the civillians labor force expressed as a %

A

unemployment rate

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12
Q

the situation where workers are between jobs for one reason or another

A

frictional unemployment

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13
Q

when economic progress, a change in consumer tastes and preferences or a fundamental change in the operations of the economy reduces the demand for workers and their skills

A

structural unemployment

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14
Q

unemployment directly related to swings in the business cycle

A

cyclical unemployment

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15
Q

general decrease in the value of money due to increased prices and a higher money supply

A

inflation

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16
Q

a fall in the general price level and increase in the value of money

17
Q

measures how rapidly the overall price level is changing. calculated by determining the % change in the CPI

A

inflation rate

18
Q

What does CPI measure?

A

inflation rate

19
Q
  1. distored spending patterns
  2. reduced purchasing power
  3. loss of economic efficiency
A

consequences of inflation

20
Q

overall increases in demand pull up the average level of prices

A

demand pull inflation

21
Q

occurs when overall prices increase due to increases in the cost of wages and raw materials

A

cost push inflation

22
Q

relatively low rate of inflation usually 1-3 percent annually

A

creeping inflation

23
Q

an extremely high rate of inflation over a short period of time

A

hyperinflation

24
Q

a period of stagnant economic growth coupled with inflation

A

staglfation

25
the quantity and quality of material goods and services available to a given population
standard of living
26
result of systematic changes in real GDP marked by alternating periods of expansion and contraction
business cycle
27
rise and fall of real GDP overtime on an irregular basis
business fluctuations
28
has 2 alternatiing phases: 1. contraction 2. expansion
phases of the business cycle
29
a prolonged contraction lasting 6+ months
recession
30
point where GDP stops going up
peak
31
turnaround point where real GDP stops going down, and the next expansion begins
trough
32
a period of uninterrupted growth of real GDP
expansion
33
growth path the economy would follow if it were not interrupted by alternating periods of recession and recovery
trend line