Holt Economics Chapter 11 vocab – Flashcards
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Unemployment Rate
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The percentage of people in the civilian labor force who are unemployed.
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Marginally Attached Worker
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People who once held productive jobs but have given up looking for work.
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Discouraged Worker
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People who want a job but have stopped looking for work for job-related reasons.
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Underemployed
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Workers who have jobs under their skill levels.
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Frictional Unemployment
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Moving from one job to another.
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Structural Unemployment
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Occurs as a result of changes in technology or in the way the economy is structured.
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Seasonal Unemployment
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Unemployment that results from seasonal variations in the economy.
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Cyclical Unemployment
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Unemployment resulting from recessions and economic downturns.
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Aggregate Supply
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Total amount of goods and services produced throughout the economy.
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Aggregate Demand
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Total amount of spending by individuals and businesses throughout the economy.
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Inflation
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An increase in the average price level in an economy.
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Deflation
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A decrease in the average price level of goods and services in an economy.
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Demand-Pull Inflation
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A general rise in prices that occurs when overall demand for goods increases faster than the output of goods.
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Cost-Push Inflation
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A general rise in prices that results from a rise in the costs of production.
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Supply Shock
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An event that increases the cost of production for all of many firms resulting in overall higher prices.
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Wage-Price Spiral
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Develops when increased wages raise production costs, which leads to higher prices for goods or services, encouraging workers to demand higher wages.
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Consumer Price Index
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A measure of the average change over time in the price of a fixed group of products.
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Market basket
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a representative sample of about 400 goods and services that the U.S. Department of Labor has identified as common purchases of a typical consumer
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Producer Price Index
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A measure of the average change over time in the price of goods and services bought by producers.
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Inflation Rate
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The monthly or annual percentage change in prices.
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Hyperinflation
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The worst degree of inflation, inflation increases at a rate of several 100 percent a year.
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Poverty Threshold
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Or poverty level, lowest income.
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Poverty Rate
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A percentage of individuals or families in the total population that are living in poverty.
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Lorenz Curve
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Illustrates the amount that a nations distribution of income varies from a perfectly proportional distribution of income.
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Gini Index
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Statistical measure of income inequality.
