Term
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Definition
| The study of economy-wide phenomena, including inflation, unemployment, and economic growth. |
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Term
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Definition
| a visual model of the economy that shows how dollars flow through markets among households and firms |
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Definition
| a good for which, other things being equal, an increase in income leads to an increase in demand |
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Definition
| a good for which, other things being equal, an increase in income leads to a decrease in demand |
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Term
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Definition
| two goods for which an increase in the price of one leads to an increase in the demand for the other |
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Term
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Definition
| a situation in which the market price has reached the level at which quantity supplied equals quantity demanded |
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Term
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Definition
| a situation in which quantity supplied is greater than quantity demanded |
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Term
| Production Possibilities Frontier (PPF) |
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Definition
| a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology |
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Term
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Definition
| a legal minimum on the price at which a good can be sold |
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Definition
| the percentage of the labor force that is unemployed |
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Term
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Definition
| the production of goods and services valued at current prices |
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Term
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Definition
| a period of declining real incomes and rising unemployment |
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Term
| Labor force participation rate |
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Definition
| the percentage of the adult population that is in the labor force |
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Term
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Definition
| a measure of the overall cost of the goods and services bought by a typical consumer |
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Term
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Definition
| spending on goods and services by local, state, and federal governments |
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Term
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Definition
| unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone that wants one |
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Term
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Definition
| an increase in the overall level of prices in the economy |
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