12 terms

Econ Unit 4, Quiz #2

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Terms in this set (...)

inflation
a rise in the price level.
consumer price index (CPI)
the average price of a market basket of goods used to measure inflation.
market basket
representative group of goods and services used to compile the consumer price index
aggregate supply
the total supply of goods and services within a country
aggregate demand
Total demand for goods and services within a nation
unemployment
Measures the number of people who are able to work, but do not have a job during a period of time.
structural unemployment
Structural unemployment occurs when someone has job skills that no one wants or when a
company wants to hire someone but can't find anyone who has the required skills; also occurs when technology replaces a worker's job
frictional unemployment
Unemployed people don't always take the very first job they can find. They often wait to find
a job that fits their talents and preferences. There are considered this form of unemployment while they search for a job that is a good fit.
cyclical unemployment
Most economies encounter periods of growth and recession. These are people who are laid off
as a result of a contracting economy. This is the worst type of unemployment.
seasonal unemployment
Some people are unemployed at certain times of the year because of the industry they are
in. There is a limited need for some work to be performed year round, such as lawn care.
underemployed
working at a job for which one is overqualified, or working part-time when full-time work is desired
full employment
the level of employment reached when there is no cyclical unemployment

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