Econ Ch10-12 Vocab

Deflation

A falling price level on a sustained basis

Short-term Growth

A movement of a point closer to the PPC or upturns in the business cycle

Frictional Unemployment

People who are in between job

Unemployment Rate

The number of people looking for a job who do not have one as a percentage rate

Consumer Price Index

Used to measure the cost of living for a typical household

Seasonal Unemployment

Peope who do not have jobs depending on the time of year

Inflation

A rising price level on a sustained basis

Unemployment

The number of people looking for a job who do not have one

Long-Term Growth

Rightward shifts of the PPC or the LRAS curve

Demand-Deficient Unemployment

Other name for Cyclical Unemployment

Demand-Pull Inflation

Price level increases due to increases in aggregate demand

Weighted Price Index

Average prices in one period in relation to average prices in another period that take account of the relative importance of goods and services in consumer spending

Disinflation

A fall in the rate of inflation

Cost-Push Inflation

Price level increases due to decreases in short-run aggregate supply

Deferred Consumption

Postponed spending due to the expectation of falling prices

Structural Unemployment

People without work due to changing demand patterns or mismatches between demand and supply for particular labour skills

Cyclical Unemployment

People who do not have jobs due to the downward phases of short-term fluctuations

Poverty

Inability of an individual or family to afford an adequate standard of goods and services

Direct Tax

A payment made directly to the government

Opportunity

A set of circumstances making it possible for someone to do something

Globalization

Economic interconnections on a global scale

Economic Inequality

Differing abilities of people to satisfy their economic needs, mainly due to differences in income and wealth

Regressive Taxation

As income increases the fraction of income paid decreases

Relative Poverty

Inability of an individual or family to afford a basic standard of goods and services where this standard increases over time to reflect increases in society’s standards of living

Transfer Payments

Paid by the government to social groups needing assistance

Multidimensional Poverty Index

A composite indicator of poverty

Absolute Poverty

Inability of an individual or family to afford a basic standaard of goods and services where this standard is fixed over time

Lorenz Curve

An illustration of income or wealth inequality relative to a line representing perect income equality

Poverty Line

An income level that is just enough to assure a family with a minimum standard of living

Minimum Income Standards

A method to measure poverty based on people’s beliefs about a minimum acceptable standard of living

Universal Basic Income (UBI)

Method to provide everyone in a society with some money regardless of any possible other income

Proportional Taxation

As income increases the fraction of income paid remains constant

Progressive Taxation

As income increases the fraction of income paid increases

Gini Coefficient

A measure of income or wealth inequality that is derived from a Lorenz curve

Quintile

Division of a population into five equal groups

Indirect Tax

Payment to the government determined by spending to buy goods and services