Question

economics vocabulary review
instructions: read each definition carefully. write the correct term from your vocabulary list in the box provided.

1. when almost all people who want to work have jobs, without causing inflation (usually about 4 - 5% unemployment).
2. job loss that happens because work is only available during certain times of the year (like lifeguards or holiday workers).
3. an increase in a countrys production of goods and services over time.
4. the lowest point in the business cycle before the economy improves.
5. a significant decline in economic activity lasting at least six months.
6. the percentage of the labor force that is actively looking for work but cannot find a job.
7. the pattern of ups and downs (expansions and contractions) in the economy over time.
8. the highest point in the business cycle before the economy slows down.
9. the total value of all goods and services produced within a countrys borders in one year.
10. gdp adjusted for inflation; it shows the actual growth in production.
11. short - term unemployment while people switch jobs or enter the workforce.
12. a general rise in prices over time, reducing the purchasing power of money.
13. job loss caused by downturns in the economy, like during a recession.
14. a long and very severe recession with high unemployment and low production.

Explanation:

1. The term for when almost all people who want to work have jobs (with about 4 - 5% unemployment) is "full - employment".
2. Job loss due to work availability only at certain times (like lifeguards) is "seasonal unemployment".
3. An increase in a country's production of goods and services over time is "economic growth".
4. The lowest point in the business cycle before the economy improves is "trough".
5. A significant decline in economic activity lasting at least six months is "recession".
6. The percentage of the labor force actively looking for work but can't find a job is "unemployment rate".
7. The pattern of ups and downs (expansions and contractions) in the economy over time is "business cycle".
8. The highest point in the business cycle before the economy slows down is "peak".
9. The total value of all goods and services produced within a country's borders in one year is "GDP (Gross Domestic Product)".
10. GDP adjusted for inflation (shows actual growth in production) is "real GDP".
11. Short - term unemployment while people switch jobs or enter the workforce is "frictional unemployment".
12. A general rise in prices over time (reducing the purchasing power of money) is "inflation".
13. Job loss caused by downturns in the economy (like during a recession) is "cyclical unemployment".
14. A long and very severe recession with high unemployment and low production is "depression".

Answer:

1. full - employment
2. seasonal unemployment
3. economic growth
4. trough
5. recession
6. unemployment rate
7. business cycle
8. peak
9. GDP (Gross Domestic Product)
10. real GDP
11. frictional unemployment
12. inflation
13. cyclical unemployment
14. depression