AP Macroeconomics - Unit 2 Flashcard

Front

What measure shows how well the economy is doing over time?

Back

Gross Domestic Product

Front

Which of the following is NOT included in a country's GDP? Consumer Spending, Business Spending, Government Spending, Net Exports, Net Imports

Back

Net Imports

Front

What measure shows what percentage of the eligible workers do not have jobs?

Back

Unemployment Rate

Front

When people are in the process of looking for a job after being fired or are transitioning to a new position, this is called?

Back

Frictional Unemployment

Front

When people can't find a job because of a lack of demand for their skills or type of labor, this is called?

Back

Structural Unemployment

Front

When people can't find a job because the economy is not doing well due to a recession, this is called?

Back

Cyclical Unemployment

Front

In the United States, a healthy economy should have an unemployment rate of 4-6%.

Back

True

Front

What measure shows the rate at which the money supply is increasing relative to the number of people using it?

Back

Inflation Rate

Front

An increase in the supply of money that leads to an increase in prices.

Back

Inflation

Front

A decrease in the general price level of goods in services that can be negative in the long run by driving down the GDP and raising unemployment.

Back

Deflation