Macroeconomics

business cycle

• Alternating periods of economic expansion and economic recession

• A steady increase in economic growth

• A decline in consumer spending

• A period of high inflation

inflation

• A continuous rise in the price of goods and services

• A decrease in the value of currency

• An increase in unemployment rates

• A rise in interest rates

frictional unemployment

• unemployment that occurs when people take time to find a job

• unemployment due to a recession

• unemployment caused by technological changes

• unemployment that lasts for a long period

full employment

• the level of employment reached when there is no cyclical unemployment

• the maximum level of unemployment that can be sustained

• the point at which all workers are satisfied with their jobs

• the level of employment that includes seasonal unemployment

Gross Domestic Product

• A measurement of the total goods and services produced within a country.

• A measure of a country's population density.

• The total value of exports minus imports in a country.

• A calculation of the average income of citizens in a country.

cyclical unemployment

• unemployment that rises during economic downturns and falls when the economy improves

• unemployment that occurs due to seasonal work patterns

• unemployment caused by technological advancements

• unemployment that is a result of voluntary job changes

monetary policy

• the setting of the money supply by policymakers in the central bank

• the regulation of interest rates by commercial banks

• the process of printing more currency to increase inflation

• the management of government spending and taxation

fiscal policy

• Government policy that attempts to manage the economy by controlling taxing and spending.

• A strategy to increase the money supply in the economy.

• A method to regulate interest rates and inflation.

• A plan to reduce government debt through austerity measures.

Federal reserve

• the central bank of the United States

• a private bank in New York

• a government agency for tax collection

• a financial institution for loans

structural unemployment

• unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one

• unemployment caused by a recession in the economy

• temporary unemployment during the transition between jobs

• unemployment due to seasonal work fluctuations