AP Macro Unit 2 Vocab

Gross Domestic Product

• Prices increasing at slower rates.

• Workers that are able and willing to work and actively looking for a job but aren’t working.

• Parts that go into the production of the final good.

• The dollar value of all goods and services produced within a country’s borders in a given year.

• All the spending on final goods and services produced in a given year.

Intermediate goods

• Prices increasing at slower rates.

• Workers that are able and willing to work and actively looking for a job but aren’t working.

• Parts that go into the production of the final good.

• The dollar value of all goods and services produced within a country’s borders in a given year.

• All the spending on final goods and services produced in a given year.

Expenditure Approach

• Prices increasing at slower rates.

• Workers that are able and willing to work and actively looking for a job but aren’t working.

• Parts that go into the production of the final good.

• The dollar value of all goods and services produced within a country’s borders in a given year.

• All the spending on final goods and services produced in a given year.

Disinflation

• Prices increasing at slower rates.

• Workers that are able and willing to work and actively looking for a job but aren’t working.

• Parts that go into the production of the final good.

• The dollar value of all goods and services produced within a country’s borders in a given year.

• All the spending on final goods and services produced in a given year.

Unemployment

• Prices increasing at slower rates.

• Workers that are able and willing to work and actively looking for a job but aren’t working.

• Parts that go into the production of the final good.

• The dollar value of all goods and services produced within a country’s borders in a given year.

• All the spending on final goods and services produced in a given year.

Frictional Unemployment

• Unemployment caused from a recession.

• Temporary unemployment or being between jobs but have transferable skills.

• Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.

• People who are no longer looking for a job because they have given up.

• Changes in the labor force make some skills obsolete and job loss is permanent.

Structural Unemployment

• Unemployment caused from a recession.

• Temporary unemployment or being between jobs but have transferable skills.

• Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.

• People who are no longer looking for a job because they have given up.

• Changes in the labor force make some skills obsolete and job loss is permanent.

Cyclical Unemployment

• Unemployment caused from a recession.

• Temporary unemployment or being between jobs but have transferable skills.

• Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.

• People who are no longer looking for a job because they have given up.

• Changes in the labor force make some skills obsolete and job loss is permanent.

Natural Rate of Unemployment

• Unemployment caused from a recession.

• Temporary unemployment or being between jobs but have transferable skills.

• Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.

• People who are no longer looking for a job because they have given up.

• Changes in the labor force make some skills obsolete and job loss is permanent.

Discouraged Workers

• Unemployment caused from a recession.

• Temporary unemployment or being between jobs but have transferable skills.

• Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.

• People who are no longer looking for a job because they have given up.

• Changes in the labor force make some skills obsolete and job loss is permanent.