Studied by 2 peopleunderground 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
Note 
Flashcard (63)