Ch 8-Terms & Concepts

Ch 8-Terms & Concepts - (3 1 Terms& Concepts •...

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Unformatted text preview: (3 %) 1 Terms & Concepts • • • • • • • • • • • • • • • • Business cycle – Peak – Trough – Expansionary phase (boom) – Contractionary phase (bust) – Trend line (potential GDP & average Growth rate of U.S. GDP) – Actual GDP Recession Depression Inflation & bad effects on the economy from inflation Stagflation Hyperinflation Labor force participation rate force participation rate Unemployment rate & who counts as unemployed Labor force Employment to population rate Natural Rate of unemployment (healthy) – Frictional Unemployment – Structural Unemployment • Policy induced (Public Sector) • Technological (& creative destruction again) (& creative destruction again) • Seasonal • Regional Cyclical Unemployment (unhealthy) Agggregate demand (GDP, expenditures approach) Aggregate supply (GDP, income approach) Inflation rate (and how to calculate it) & anticipated vs. unanticipated What causes inflation? 2 ...
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