economics unit 1

CPI

Measures price changes for a selected basket of goods/services

inflation

Overall prices rising over time

recession

Period of declining economic activity/GDP

GDP

Value of final goods/services produced within a country

national debt

Total money the federal government owes

scarcity

Limited resources vs. unlimited wants

supply

Amount producers are willing/able to sell

demand

Amount consumers are willing/able to buy

unemployment rate

% of labor force actively seeking work but unemployed

mixed economy

Combination of market and government decision-making

traditional economy

Economy based on customs and traditions

market economy

Individuals/businesses make economic decisions

command economy

Government makes major economic decisions

federal reserve

U.S. central bank that conducts monetary policy