AP Macro Unit 2 Vocab

Front

Gross Domestic Product

Back

The dollar value of all goods and services produced within a country’s borders in a given year.

Front

Intermediate goods

Back

Parts that go into the production of the final good.

Front

Expenditure Approach

Back

All spending on final goods and services produced in a year.

Front

Disinflation

Back

Prices increasing at slower rates.

Front

Unemployment

Back

Workers able and willing to work, actively seeking a job but not employed.

Front

Frictional Unemployment

Back

Temporary unemployment or being between jobs with transferable skills.

Front

Structural Unemployment

Back

Changes in the labor force make some skills obsolete and job loss is permanent.

Front

Cyclical Unemployment

Back

Unemployment caused by a recession.

Front

Natural Rate of Unemployment

Back

Frictional + structural unemployment; exists when the economy is healthy.

Front

Discouraged Workers

Back

People who have given up looking for a job.