Ch. 13 Economic Challenges

Front

When people are in between jobs or returning to the work force after a period of time.

Back

Frictional unemployment

Front

a general increase in prices is called

Back

inflation

Front

A measurement that shows how the average price of a standard group of goods changes over time

Back

Price index

Front

a representative collection of goods and services used by a typical urban consumer

Back

market basket

Front

the idea that too much money in the economy leads to inflation.

Back

quantity theory

Front

What theory states that inflation occurs when producers raise prices in order to meet increased costs for labor and raw materials?

Back

cost-push theory

Front

the way income is distributed among the population, is equal.

Back

income distribution

Front

the income level below that which is needed to support a household or family

Back

poverty threshold

Front

low-employment areas where companies can locate free of certain taxes

Back

Enterprise zones

Front

cyclical unemployment: when the demand for goods and services drops

Back

cyclical unemployment