Unit 2 Review

1. unemployment that occurs as workers move between jobs
3. a measure of inflation that U.S. government statisticians calculate based on the price level from a fixed basket of goods and services that represents the average consumer's purchases
5. the percentage of adults who are in the labor force and thus seeking jobs, but who do not have jobs
6. output used directly for consumption, investment, government, and trade purposes
9. a diagram that views the economy as consisting of households and firms interacting in a goods and services market and a labor market
10. a general and ongoing rise in price levels in an economy
11. arbitrary year whose value as an index number economists define as 100;
12. measure of the size of total production in an economy
14. unemployment closely tied to the business cycle,
15. during the business cycle, the highest point of output before a recession begins
16. unemployment that occurs because individuals lack skills valued by employers
18. a market in which firms are sellers of what they produce and households are buyers

2. products (goods and services) made domestically and sold abroad
4. the unemployment rate that would exist in a growing and healthy economy from the combination of economic, social, and political factors that exist at a given time
7. the economic statistic actually announced at that time, not adjusted for inflation
8. the economy's relatively short-term movement in and out of recession
10. products (goods and services) made abroad and then sold domestically
13. an economic statistic after it has been adjusted for inflation
17. during the business cycle, the lowest point of output in a recession, before a recovery begins