Econ Unit 5 Extra Terms That I Feel Like Will Be On the Test

I just feel like Ijeoma's gonna pull something! Also this is the third unit we did but Unit 5 in the textbook #urwelcome

underground economy

underground economy

activity that goes unreported either because it’s illegal or because those involved want to evade taxes an otherwise legal activity

net investment

gross investment - depreciation

current dollars

the dollar value at the time the output is produced

index number

the value of something in a particular year compared to its value in a base year

GDP price index

nominal GDP/ real GDP x 100

regions that produce durable goods

those who a recession hits hardest

output per capita

real GDP divided by the population

frictional unemployment

unemployment the time required to bring together labor suppliers and labor demanders

seasonal unemployment

unemployment caused by seasonal changes in labor demand during the year

cyclical unemployment

the increase in unemployment caused by the recession phase of the business cycle

U.S. noninstitutional adult population

those 16 years old and older, except people in the military, in prison, or in psychiatric hospitals; counted in the unemployment rate

unemployment rate

number unemployed/ number in the labor force

annual inflation rate

the percentage increase in the price level from one year to the next

real interest rate

nominal interest rate - inflation rate

federal budget deficit

the amount by which total federal outlays exceed total federal revenues

golden age of keynesian economics

the 1960’s

double counting

sales of intermediate goods and services are excluded from GDP to avoid

valued added

revenue - amount paid for intermediate good

intermediate goods

inputs purchased from other firms

structural unemployment

when the skills and experience of the worker don’t match up with the skills and experience employers demand