| A | B |
|---|
| aggregate demand | total amount of spending by individuals and businesses throughout the economy |
| aggregate supply | total amount of goods and services produced throughout the economy |
| cost-push inflation | when producers raise prices to cover higher resource costs |
| CPI | a measure of the average change over time in the price of a fixed group of products |
| cyclical unemployment | Results from recessions and economic downtowns - usually thought to be harmful to the economy |
| deflation | a decrease in the average price level of all goods and services in an economy |
| demand-pull inflation | when aggregate demand increases faster than the economy's productive capacity |
| discouraged worker | a subset of marginally attached workers who want a job but have stopped looking for a job for job-related reasons |
| frictional unemployment | when workers are moving from one job to another - usually considered a normal part of a healthy and changing economoy |
| hyperinflation | the worst degree of inflation - siutation where inflation is increasing at a rateof several hundred percentage a year |
| income gap | the amount of income inequality in the nation |
| inflation | an increase in the average price level of all products in an economy |
| market basket | a representative sample of commonly purchased consumer items |
| poverty rate | the percentage of individuals or families in the total population that are living in poverty |
| poverty level/threshold | the lowest income as determined by the government that a family or household of a certain size or composition needs to maintain a basic standard of living |
| structural unemployment | occurs as a result of changes in technology or in the way the economy is organized |
| supply shock | an event that increases the cost of production for all or many firms, resulting in overall higher prices - crop failures, natural disasters, political unrest |
| underemployed workers | workers who have jobs beneath their skill level or who want full-time work but are only able to find part-time jobs |
| unemployment rate | most closely watching labor force statistic--the percentage of people in the labor force who are unemployed |
| seasonal unemployment | regular fluctuations in jobs usually affected by busy times in the year or holidays or harvest schedules |
