Macro

Front

What is inflation?

Back

Inflation is the increase in prices and fall in the purchasing value of money.

Front

How is economic growth measured?

Back

Economic growth is measured by the percentage change in Gross Domestic Product (GDP).

Front

People who want to work, but are unable to find work.

Back

unemployed

Front

Government cuts taxes. What is the immediate effect on aggregate demand, price level, and aggregate supply?

Back

Aggregate demand increases, price level rises, aggregate supply remains unchanged.

Front

Term for comparing prices of goods between years to calculate the consumer price index

Back

Market Basket

Front

Why would people on a fixed income be hurt by inflation?

Back

Purchasing power is reduced.

Front

Why would banks be hurt by unanticipated inflation?

Back

Banks are hurt by unanticipated inflation because it erodes the real value of loan repayments and increases uncertainty in financial management.

Front

Term for people laid off during an economic contraction.

Back

cyclically unemployed

Front

Term for someone who has recently or is about to enter the labor force.

Back

Frictional unemployment

Front

What is an economic contraction?

Back

An economic contraction is a decline in economic activity characterized by a decrease in real GDP.