U7 Macro CSA #1

natural

frictional

structural

cyclical

the unemployment rate when it hits 8 percent unemployment.

the rate of unemployment that would occur in the absence of cyclical fluctuations. (4-5%)

the cyclical rate of unemployment added to frictional and structural unemployment (above 6%)

the rate of unemployment when everyone that can be employed is employed. (below 4%)

Nominal GDP

Unemployment rate

Real GDP per capita

Inflation rate

Frictionally unemployed

Not in the Labor Force

Cyclically unemployed

Structurally unemployed

Frictional unemployment

Cyclical unemployment

Structural unemployment

Seasonal unemployment

Demand, Investment, Government Spending, Net Exports

Consumption, Supply, Exports, Imports

Consumption, Investment, Government Spending, Net Exports

Consumption, Demand, Supply, Net Exports

The price level of goods and services sold plus the income of workers.

The quantity of goods and services produced by private business in one year.

The total spending of federal, state and local governments plus the difference in value of items traded.

The total dollar value of all new goods and services produced in a country in one year.

debt

finances

credit

services

compare the sum of two years / compare policy changes / compare one country to another

compare one year to another / compare policy changes / compare one country to another

compare one year to another / compare population changes / compare one country to another

Government Spending

Consumption

Net Exports

Investment

Deciding whether or not to buy bonds on the open market

Calculating Gross Domestic Product

For calculating Unemployment

to compile a Consumer Price Index to measure inflation

Hurley, a farmer, buys machinery with a fixed-rate loan to be repaid over seven years

The elderly living on a fixed income

Jacob buys a new home with an adjustable-rate mortgage

Bella repaying a variable rate car loan

Sean who is paying a fixed rate car loan

Renters living in a rent controlled apartment

Jessica borrows money for college from her parents and will pay it back interest free after she graduates

Charlie parents put saving for his college into a basic savings account (0.25% interest)

When inflation increases, nominal interest rates decrease

Inflation decreases the purchasing power of a country's currency

Inflation causes unemployment

Unanticipated inflation benefits lenders

There is an increase in productivity

There is a substantial increase in the price of key resources

The government pays debt by printing money

There is an increase in consumer spending