Instability and Fluxuation

Fluctuations in economic activity, such as employment and production

the height of an economic expansion, when real GDP stops rising

period of reduced economic activity

lowest point of a business cycle

a rise in business activity after a recession or depression

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

unemployment that occurs when people take time to find a job

Unemployment that is caused by changes in technology or reduced demand for certain products.

nonworking people who are capable of working but have given up looking for a job due to the state of the job market

A general and progressive increase in prices

A situation in which prices are declining

a sustained rise in the price level caused by a rightward shift of the aggregate demand curve

When overall prices increase (inflation) due to increases in the cost of wages and raw materials.

monthly statistics that measure the pace of inflation or deflation

A selected mix of goods and services that tracks the performance of a specific market or segment. (ex: in the broader category of medical care, the market basket may include prices for things like prescription drugs, medical supplies, physicians' services, and eyeglasses.)

An overall rise in the cost of goods that results from a rise in wages.

Sudden increase in the cost of raw materials or energy inputs

Doubling time (in years) = 70/(percentage growth rate).

employed + unemployed

unemployed/labor force x 100