Chapter 7 Vocabulary

economic growth

real GDP per capita

rule of 70

productivity

A measure of average output or real output per unit of input. For example, the productivity of labor is determined by dividing real output by hours of work.

business cycles

peak

recession

trough

expansion

labor force

unemployment rate

discouraged workers

frictional unemployment

structural unemployment

cyclical unemployment

natural rate of unemployment

potential output

GDP gap

Okun's law

inflation

Consumer Price Index (CPI)

demand-pull inflation

cost-push inflation

nominal income

real income

anticipated inflation

unanticipated inflation

real interest rate

nominal interest rate

deflation

hyperinflation