Economics Readings Flashcards

These flashcards cover key economic concepts and terms related to business cycles, GDP, employment statistics, and foundational economic theories as discussed in the lecture.

Business Cycle

The fluctuation of economic activity characterized by periods of expansion and recessions.

Expansion

The period between the trough and peak in the business cycle where economic activity is increasing.

Recession

The period between the peak and trough in the business cycle marked by significant decline in economic activity.

NBER

National Bureau of Economic Research; an organization that maintains the chronology of business cycles in the U.S.

Say's Law

The proposition that supply creates its own demand; emphasized by classical economist Jean Baptiste Say.

Gross Domestic Product (GDP)

The total value of all goods and services produced within a country in a specific period.

Full Employment Output

The highest level of economic activity that can be sustained over the long term without triggering inflation.

Nonfarm Payroll Employment

A statistic published by the Bureau of Labor Statistics that measures the number of jobs in the economy excluding farm workers and workers in a few other job classifications.

Aggregate Activity

The total economic activity in an economy, often measured through indicators like GDP, employment rates, and personal consumption.

Monetary Policy

Government policy that manages the money supply and interest rates to influence economic activity.

Labor Market

The supply and demand for labor, where employers seek to hire and employees seek to sell their labor.

Unemployment Rate

The percentage of the total workforce that is unemployed but actively seeking employment.

Consumer Spending

The total money spent by consumers in the economy on goods and services.

Economic Growth

An increase in the production of goods and services in an economy over time, often measured as a percentage increase in GDP.

Public Interest

The welfare or well-being of the general public, often considered in relation to policies and economic decisions.

Income Inequality

The unequal distribution of income within a population, highlighting disparities between different groups.

Seasonally Adjusted Annual Rate (SAAR)

An annualized rate of economic activity adjusted for seasonal variations, allowing for more accurate comparisons across different periods.

Frictional Unemployment

The portion of unemployment attributed to normal labor market turnover, reflecting short-term job or skill mismatches.

Structural Unemployment

Unemployment resulting from economic changes that cause significant job losses in certain industries.

Natural Rate of Unemployment

The unemployment rate that exists due to the normal functioning of the economy, comprising frictional and structural unemployment.

Cyclical Unemployment

Unemployment that exceeds the combined rates of frictional and structural unemployment, often resulting from economic downturns.