such as copper or coffee Index used to measure Consumer price price changes for a Looking at how much index market basket of something used to cost frequently used compared to consumer items Relatively low rate of Creeping inflation Expected rate of inflation, usually 1 to inflation 3 percent annually Domestic Product Current GDP measured in current GDP without inflation prices, unadjusted for inflation Unemployment Cyclical When demand is low directly related to unemployment and workers are not swings in the needed business cycle Decrease in the general Deflation level of the prices of Prices drop goods and services Gradual wear on capital Depreciation Cost of something goes goods during down over time production State of the economy with large numbers of unemployed, declining real Depression Extremely low incomes, economic growth overcapacity in manufacturing plants, general economic hardship Tax on the transfer of Tax paid when Estate tax property when a property is transferred person dies death) General revenue tax Tax on specific things Excise tax levied on the (just paper, etc) – manufacture or sale usually things not of selected needed Period of growth of Expansion real GDP; recovery Economy grows from recession An event that produces a Unpredictable change External significant change in economy within an economy, despite occurring War, natural disaster outside of it Federal Insurance Contributions Act; tax levied on that pay FICA employers and Social Security & employees to support Medicare Social Security and Medicare
such as copper or coffee Consumer price index Index used to measure price changes for a market basket of frequently used consumer items Looking at how much something used to cost compared to Creeping inflation Relatively low rate of inflation, usually 1 to 3 percent annually Expected rate of inflation Current GDP Domestic Product measured in current prices, unadjusted for inflation GDP without inflation Cyclical unemployment Unemployment directly related to swings in the business cycle When demand is low and workers are not needed Deflation Decrease in the general level of the prices of goods and services Prices drop Depreciation Gradual wear on capital goods during production Cost of something goes down over time Depression State of the economy with large numbers of unemployed, declining real incomes, overcapacity in manufacturing plants, general economic hardship Extremely low economic growth Estate tax Tax on the transfer of property when a person dies Tax paid when property is transferred death) Excise tax General revenue tax levied on the manufacture or sale of selected Tax on specific things (just paper, etc) – usually things not needed Expansion Period of growth of real GDP; recovery from recession Economy grows External An event that produces a significant change within an economy, despite occurring outside of it Unpredictable change in economy War, natural disaster FICA Federal Insurance Contributions Act; tax levied on employers and employees to support Social Security and Medicare that pay Social Security & Medicare
econ_key_terms.docx