Econ Hi Mary! Since you have been to the zoo multiple times before, I am assumin
A phase of the business cycle characterized by increasing real GDP, income, and employment.
Expansion
A point in the business cycle where real GDP reaches a maximum. The peak marks the end of an expansion.
peak
A decline in real output for at least two consecutive quarters.
recession
A long-lasting and severe recession.
depression
The lowest point of economic activity in the business cycle, where real GDP reaches a minimum. The trough marks the end of a recession.
Trough
Individuals 16 years of age and older who are not institutionalized (e.g., in correctional facilities or mental hospitals) and who either are employed or are unemployed but actively seeking employment.
labor force
The number of people in the economy who hold a full- or part-time position.
employed
The number of people in the economy who have not had a job for at least a week but had a job for at least a week but have actively searched for employment in the past four weeks.
unemployed
Unemployment resulting from workers searching and waiting for jobs.
frictional unemployment:
Unemployment occurring when the skills that some workers have to offer don’t match the skills needed by the firms in the economy.
structural unemployment
Unemployment resulting from fluctuations in the business cycle
cyclical unemployment
A type of frictional unemployment resulting from workers searching and waiting for jobs due to seasonal fluctuations in demand for certain types of workers.
seasonal unemployment
Someone who wants to work but is not actively searching for a job. Definition in context:Jim used to work at a large automobile manufacturer but was laid off during the Great Recession. He searched unsuccessfully for employment for years. He lost hope and has since given up searching for a job
discouraged worker
The rate of unemployment equal to the sum of the frictional and structural unemployment rates. A fully employed economy operates at this rate.
Natural rate of unemployment:
The employment an economy experiences when it is operating at the natural rate of unemployment.
full employment
A general increase in the prices of goods and services.
inflation
An economic indicator used to measure over time the average price of a market basket of goods and services purchased by the typical consumer.
Consumer Price Index (CPI)
A situation in which the inflation rate is positive and greater than
hyperinflation
A situation in which the inflation rate is positive but declining over time.
disinflation
A situation in which the inflation rate is negative.
deflation
A price index that measures the average change over time in the selling prices received by producers of goods and services.
Producer Price Index (PPI)