Vocab Quiz-Unit 2

Question 1

Aggregate Output

Answer 1

The economy’s total production of goods and services for a given time period

Question 2

Business Cycle

Answer 2

alternation between recessions and expansions; fluctuations in aggregate output due to changes in aggregate and/ or aggregate demand

Question 3

Expansion

Answer 3

Period of economic output and employment are rising

Question 4

Recession

Answer 4

Period of economic downturn when output and employment are falling

Question 5

Depression

Answer 5

A very deep and prolonged downturn

Question 6

Employed

Answer 6

Currently working(part time or full-time)

Question 7

Unemployed

Answer 7

Not currently working but actively looking for work( or waiting to be recalled from a temporary layoff)

Question 8

Labor Force

Answer 8

Sum of employed and unemployed

Question 9

Unemployment rate

Answer 9

The percent of the labor force that is unemployed

Question 10

Aggregate price level

Answer 10

A measure of the overall level of prices in the economy

Question 11

Inflation

Answer 11

A rising overall price level

Question 12

Deflation

Answer 12

A falling overall price level; negative inflation

Question 13

Disinflation

Answer 13

The process of bringing the inflation rate down

Question 14

Price stability

Answer 14

When the aggregate price level is changing only very slowly

Question 15

Economic Growth

Answer 15

An increase in the maximum amount of goods and services an economy can produce; a long-run idea

Question 16

GDP

Answer 16

Total market value of all final goods and services produced in a country over a time period(typically a yr)