Vocab Quiz-Unit 2 Flashcards
Aggregate Output
The economy’s total production of goods and services for a given time period
Business Cycle
alternation between recessions and expansions; fluctuations in aggregate output due to changes in aggregate and/ or aggregate demand
Expansion
Period of economic output and employment are rising
Recession
Period of economic downturn when output and employment are falling
Depression
A very deep and prolonged downturn
Employed
Currently working(part time or full-time)
Unemployed
Not currently working but actively looking for work( or waiting to be recalled from a temporary layoff)
Labor Force
Sum of employed and unemployed
Unemployment rate
The percent of the labor force that is unemployed
Aggregate price level
A measure of the overall level of prices in the economy
Inflation
A rising overall price level
Deflation
A falling overall price level; negative inflation
Disinflation
The process of bringing the inflation rate down
Price stability
When the aggregate price level is changing only very slowly
Economic Growth
An increase in the maximum amount of goods and services an economy can produce; a long-run idea