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ECO Topic 7 Vocab
ECO Topic 7 Vocab Lessons 1,2,4,6 Pearson Realize
Term | Definition |
---|---|
Gross Domestic Product | The dollar value of all final goods and services produced within a country’s borders in a given year |
Intermediate Goods | Products used in the production of final goods |
Durable Goods | Those goods that last for a relatively long time, such as refrigerators, cars, and DVD players |
Nondurable Good | Good – Those goods that last a short period of time, such as food, light bulbs, and sneakers |
Nominal DGP | GDP measured in current prices |
Gross National Product | The annual income earned by a nation’s firms and citizens |
Depreciation | The loss of the value of capital equipment that results from normal wear and tear; A decrease in the value of currency |
Aggregate Supply | The total amount of goods and services in the economy available at all possible price levels |
Aggregate Demand | The amount of goods and services in the economy that will be purchased at all possible price levels |
Real GDP | GDP expressed in constant, or unchanging, prices |
Business Cycles | A period of macroeconomic expansion, or growth, followed by one of contraction, or decline |
Expansion | A period of economic growth as measured by a rise in real GDP |
Economic Growth | A steady, long-term increase in real GDP |
Peak | The height of an economic expansion, when real GDP stops rising |
Contraction | A period of economic decline marked by falling real GDP |
Trough | The lowest point of an economic contraction, when real GDP stops falling |
Recession | A prolonged economic contraction |
Depression | A prolonged economic contraction |
Stagflation | A decline in real GDP combined with a rise in the price level |
Leading Indicators | A set of key economic variables that economists use to predict future trends in a business cycle |
Frictional Unemployment | Type of unemployment that occurs when people take time to find a job |
Structural Unemployment | Type of unemployment that occurs when workers’ skills do not match those needed for the jobs available |
Globalization | The increasingly tight interconnection of producers, consumers, and financial systems around the world |
Seasonal Unemployment | Type of unemployment that occurs as a result of harvest schedules, vacations, or when industries make seasonal shifts in their production schedule |
Cyclical Unemployment | Unemployment that rises during economic downturns and falls when the economy improves |
Unemployment Rate | Unemployment that rises during economic downturns and falls when the economy improves |
Full Employment | The level of employment reached when there is no cyclical unemployment |
Underemployed | Working at a job for which one is overqualified or working part-time when full-time work is desired |
Discouraged Worker | Someone who wants a job but has given up looking |
Poverty Threshold | An income level below that which is needed to support families and households |
Poverty Rate | The percentage of people who live in households with incomes below the official poverty line |
Income Distribution | The way in which a nation’s total income is distributed among its population |
Food Stamp Program | Government program that helps low income people buy food |
Block Grants | Federal funds given to the states in lump sums |
Workfare | A program requiring work in exchange for temporary government assistance |
Welfare | Government aid to the poor |
Cash Transfers | Direct payments of money by the government to poor, disabled, and retired people |
Grant | A financial award given by a government agency to a private individual or group in order to carry out a specific task |