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$100 $200 $300 $400 $500 DemandSupply Key Economic AssumptionsFlowModelGDPUnemployment

C1-$100 - $100 Temporarily unemployed or being between jobs such as individuals that are qualified workers with transferrable skills What is frictional unemployment?

C1-$200 - $200 Changes in the structure of labor force and therefore makes some skill obsolete. What is structural unmployment?

C1-$300 - $300 Unemployment that results from economic downturns such as recessions. What is cyclical unemployment?

C1-$400 - $400 Is formed by Frictional unemployment and structural unemployment What is the natural rate of unemployment?

C1-$500 - $500 Unemployment from 4 to 6 percent is normal unemployment What is full unemployment?

C2-$100 - $100 The place where goods and services produced by businesses are sold to households What is the product market?

C2-$200 - $200 Your text here The place where resources, land, labor capital and entrepreneurship ability sold to businesses What is resource factor market?

C2-$300 - $300 Goods that are designed for use by final consumer What are consumer goods?

C2-$400 - $400 The inputs of labor, natural resources and capital used to generate new goods and services What is productive resources?b

C2-$500 - $500 Household spending on goods and services What is consumer spending?

C3-$100 - $100 The study of scarcity and choice What is economics?

C3-$200 - $200 Rewards or punishments that motivate particular choices What are incentives?

C3-$300 - $300 Focuses on the choice of individuals at the most basic level What is microeconomics?

C3-$400 - $400 The overall ups and downs of the economy overall What is a macroeconomics?

C3-$500 - $500 An industry that is publicly owned and has a central authority making production and consumption decisions. What is command economy?

C4-$100 - $100 What is GDP? The dollar value of all final goods and services produced within a country's borders in one year

C $200 Goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services What are intermediate goods and services?

C3-$300 - $300 What is investment spending? Spending on a new productive physical capital, such as machinery and structures, and on changes in inventories

C3-$400 - $400 The difference between the value of exports and the value of imports What are net exports?

C3-$500 - $500 The total spending on domestically produced final goods and services in the economy What is a aggregate spending?

C4-$100 - $100 Changes in price of related goods or services, income, taxes, expectations and number of consumers. What are shifts in demand curve?

C4-$200 - $200 Holds and inverse relationship as price rises. What is demand?

C4-$300 - $300 A higher prices for goods or sevices all other things being equal leads to people to demand a smaller quantity of that goods and services What is the law of demand?

C4-$400 - $400 Changes in input prices, in the price of related goods or services, changes in technology, expectations and number of producers. What are changes in supply curve?

C4-$500 - $500 What is the law of supply? Other things being equal, the price and quantity supplied of a good are positively related

C4-$100 - $100 The sum of the employed and the unemployed What is the labor force?

C4-$200 - $200 The nominal interest rate minus the rate of inflation What is the real interest rate?

C4-$300 - $300 The percent change per year in a price index, typically the consumer price index What is inflation rate?

C4-$400 - $400 Arise from the way the inflation makes money a less reliable unit of measurement What is the unit of accounts cost?

C4-$500 - $500 A hypothetical set of consumer purchases of goods and services What is market basket?