Unit 3 learning targets

What are the three main types of unemployment?

Frictional, Structural, and Cyclical unemployment.

What is Frictional Unemployment?

Temporary unemployment while changing jobs.

What is a real-life example of Frictional Unemployment?

A student looking for a new job.

What is Structural Unemployment?

Job loss because skills no longer match available jobs.

What is a real-life example of Structural Unemployment?

A factory worker replaced by machines.

What is Cyclical Unemployment?

Job loss caused by economic downturns.

What is a real-life example of Cyclical Unemployment?

A worker laid off during a recession.

What are three problems with the unemployment rate?

Doesn't count discouraged workers, underemployed workers, or job quality.

How do you calculate the unemployment rate?

Unemployed ÷ Labor Force × 100.

What is inflation?

A general increase in prices over time.

Who is helped by inflation?

Borrowers.

Who is hurt by inflation?

Savers and people on fixed incomes.

What are three causes of inflation?

Demand-pull inflation, cost-push inflation, increase in money supply.

What is GDP?

The total value of all final goods and services produced in a country in one year.

What is counted in GDP?

New goods, services, and government spending.

What is not counted in GDP?

Used goods, volunteer work, and illegal activities.

What is the difference between nominal and real GDP?

Nominal GDP uses current prices; Real GDP adjusts for inflation.

What is the effect of inflation on GDP?

It can make GDP appear larger even if production stays the same.

What is the difference between fiscal and monetary policy?

Fiscal policy uses taxes and spending; monetary policy uses interest rates and money supply.

What are the trade-offs of globalization?

Lower prices and more products but possible job losses.

How can insurance protect you from financial loss?

It helps pay for unexpected costs after accidents or damage.

What is the difference between insurance deductibles and premiums?

Deductible = amount paid before insurance helps; Premium = regular insurance payment.

What is the difference between credit cards and debit cards?

Credit cards use borrowed money; debit cards use money in your account.

What is the difference between stocks and bonds?

Stock = ownership; Bond = loan.

What are the Three C's of credit?

Character, Capacity, Collateral.

What are five factors affecting a credit score?

Payment history, amount owed, length of history, new credit, credit mix.

What are the advantages of credit cards?

Build credit, convenience, rewards.

What are the disadvantages of credit cards?

Interest charges, debt risk, fees.

What is the difference between short-term and long-term investing?

Short-term has lower risk and returns; long-term has higher growth potential.

What is Seasonal Unemployment?

Job loss due to seasonal changes in demand.

What is a Discouraged Worker?

Someone who stops looking for work.

What is Cost-Push Inflation?

Inflation caused by higher production costs.

What is the Quantity Theory?

The theory that increasing money supply can cause inflation.

What is Nominal GDP?

GDP measured using current prices.

What is Real GDP?

GDP adjusted for inflation.

What is Fiscal Policy?

Government use of taxes and spending to influence the economy.

What is a Budget Deficit?

Government spends more than it collects.

What is a Budget Surplus?

Government