| Term | Definition |
|---|
| GDP | the market value of all final goods and services produced within a nation in a given time period |
| Nominal GDP | the gross domestic product stated in terms of the current value of goods and services |
| Real GDP | nominal GDP adjusted for changes in prices |
| Underground Economy | market activities that go unreported because they are illegal or because those involved want to avoid taxation. |
| Nonmarket Activity | home childcared or performing one's own home repairs |
| Aggregate demand | total amount of goods and services that housholds, buisness, government, and foreign purchasers will buy at each and every price level |
| Aggregate supply | total ammount of goods and services that producesr will provide at each and every price level |
| Real GDP Per Capita | real GDP divided by total population. |
| Unemployment Rate | the percentage of the labor force that is jobless and actively looking for work |
| Underemployed | those who work part-time when they want full-time employment or those who work at a job below their skill level |
| Full Employment | A level of unemployment in which none of the unemployment is caused by decreased economic activity. |
| Frictional | temporary unemployment experienced by people changing jobs |
| Seasonal | unemplyment linked to seasonal work |
| Structural unemployment | A situation where jobs exist but workers looking for work do not have the necessary skill for these jobs |
| Cyclical | Unemployment caused by a part of the business cycle with decreased economic activity |
| CPI | A measure of changes in the prices of goods and services commonly purchased by consumers |
| Producer Price Index | a measure of changes in wholesale prices |
| Inflation Rate | the rate of change in prices over a set period of time |
| Hyperinflation | a rapid uncontrolled tate of inflation in excess of 50 percent per month |
| Deflation | A decrease in the general price level |
| Cost Push Theory | Producers raise prices in order to meet production costs |
| Quantity Theory | Too much money in the market |
| Demand Pull Theory | When demand exceeds current supply |
| Core inflation rate | exludes the effcts of food and energy |
| Labor Force | Add up all employed and unemployed people |
| Poverty Threshold | The income level below which income is insufficient to support a family or houselhould |
| Poverty Rate | Percentage of people who live in households with income below the official poverty threshold. |
| Market Basket | a fixed list of items used specifically to track the progress of inflation in an economy or specific market |
| Workfare | a program that requires work in exchange for assistance |
| Trough | The lowest point in an economy |
| Peak | The highest point in an economy |
| Contraction | The cutback |
| Expansion | Ecnomomic growth |
Combine with other sets
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