GLE60 -- Inflation and Unemployment in the Economy as a Whole
About this set
Created by:
TimeMachine Teacher on January 29, 2012
Subjects:
gle60, economics, inflation, unemployment
Description:
60. Define inflation and unemployment in terms of an economic system as a whole (E-1C-M2)
Classes:
Mr. Blankenship's Study Group, Mr. Blankenship's Louisiana History, CMM Social Studies Teachers
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33 terms
Terms | Definitions |
|---|---|
 indicators | Inflation and unemployment are important ___ of the condition of the economy. |
| inflation | A rise in the prices of goods and services is ___. |
| deflation | A drop in prices is called ___, and is a worse sign than inflation. |
| low | A ___ rate of inflation is considered a sign of slow, healthy growth. |
| high | A ___ rate of inflation creates poverty. |
| unemployed | Civilians 16 years-old and older seeking work but unable to find a job in a given week are ___. Prisoners don't count. Patients in psychiatric facilities don't count. Active-duty military don't count |
| employees | Less economic activity results in less need for ___. |
| contraction | Less money or credit in the economy (___) may reduce economic activity. |
| Jobs | ___ may be exported to nations with lower wages. |
| Short-term | ___ unemployment is accepted as part of a dynamic economy. |
| Long-term | ___ unemployment is the real problem. |
| Frictional | Unemployment due to changes in employment, such as workers quitting jobs and seeking new employers. |
| seasonal | Unemployment caused by seasonal slowing in agriculture and construction. New graduates also cause ___ unemployment as they enter the job market. |
| Structural | Too many workers with a certain skill-set seek too few jobs requiring those skills. |
| Cyclical | The demand for labor slows with periodic downturns in the business cycle, such as recessions or depressions. |
| growth | Economic ___ expands for a few years and then contracts. |
| business cycle | Economic growth in market economies is subject to the ___. |
| booms | Expansions are called "___." |
| recessions | Economic contractions are called "___." |
| depressions | Severe economic contractions are called "___." |
| Federal Reserve | The ___ will raise interest rates to slow the boom and prevent high inflation. |
| Frictional | ___ unemployment is normal during boom years. Most is short-term because jobs are being created. |
| recession | A decline in the Gross Domestic Product (GDP) for 6 months is a ___. |
| rises | Unemployment ___ during a recession. |
| stagflation | Inflation may accompany the rise in unemployment in an economic contraction if the money supply is increased, a condition known as "___." |
| Depressions | ___ are worldwide. The economy slows, causing deflation and very high unemployment. |
| Reaganomics | The cure for stagflation in the 1980s was ___. |
| Sound | ___ money is a principle of Reaganomics. |
| cut taxes | President Reagan ___ to stimulate economic growth. |
| Deregulation | Reaganomics encouraged business growth through ___. |
| limit | A principle of Reaganomics was to ___ government spending. |
| spending | FDR attempted to end the Great Depression through government ___ on public works. |
| ideal | The ___ economy has low unemployment and low inflation. |
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