Term
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Definition
| seeks to describe the world as is. |
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Term
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Definition
| one who offers an opinion as to the way the world should be. |
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Term
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Definition
| The lower opportunity cost when producing a good when compared to another country or person. |
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Term
Consumer Price Index
(CPI)
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Definition
- Compares the cost of a given market basket of goods and services in the given year with the cost of a given market basket of goods in the base year.
- CPI serves as a basis for comparison.
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Term
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Definition
| nominal interest rate - inflation rate |
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Term
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Definition
- associated with business cycles
- rises during recessions and falls during expansions
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Term
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Definition
- occurs because job seekers and employers need time to find each other
- usually brief
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Term
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Definition
- the quantity of labor supplied the quantity demanded
- explains longer spells of unemployment
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