Macroeconomics Overview Quiz

The percentage of the labor force that is not working at a given time.

A country's total output of goods and services in a year, divided by the number of people in the country.

People who are not working but are actively seeking employment and available to work.

A major economic indicator that shows how many people are employed in an economy.

The official unemployment rate doesn't capture all types of joblessness, like people working part-time but wanting full-time work, or those who have stopped looking for work due to discouragement.

The total market value of all final goods and services produced within a country in a given period of time.

The rate at which a country's GDP grows from one year to the next. It is calculated by finding the percentage change in real GDP from one year to the next.

It's a measure of economic welfare, aiming to capture the overall well-being and quality of life experienced by a nation's population.

The inclusion of all goods and services in GDP, even those that might not contribute to well-being. The argument is that if a country's main exports are weapons, it might have a high GDP but not necessarily a high level of well-being.

Unpaid labor done at home, such as childcare, is not included in GDP. This leads to an underestimation of economic activity as it doesn't capture the value of unpaid work that contributes to overall societal well-being.

Total demand for all goods and services in an economy.

The relationship between the overall price level in an economy and the quantity of goods and services demanded.

The total value of all final goods and services produced in an economy.

Spending by households on goods and services.

Spending by businesses on capital goods, such as machinery and buildings.

Spending by the government on goods and services.

The difference between exports (X) and imports (M).

Unemployment that occurs when people are temporarily between jobs or searching for their first job. It's a natural part of the economy as jobs are constantly being created and destroyed.

Unemployment caused by a mismatch between the skills workers have and the skills required for available jobs. This happens when technology changes, or industries shift.

Unemployment caused by fluctuations in the overall economy. It rises during economic downturns (recessions) and falls during periods of economic growth.

Unemployment that occurs due to the seasonal nature of some jobs and industries, like agriculture or tourism.

The highest reasonable level of employment that an economy can achieve. It's not zero unemployment, but rather a level where unemployment is primarily due to frictional and structural factors.

The combination of frictional and structural unemployment. It represents the unavoidable level of unemployment that exists even in a healthy economy.

The concept that a young population generally has a higher frictional unemployment rate compared to an aging population.

The idea that significant changes in the economy, like technological advancements or globalization, can lead to higher structural unemployment. This is because some jobs become obsolete while new ones emerge, creating a skills mismatch.