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Gross Domestic Product (GDP)
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The market value of all final goods and services produced in the nation during a particular period, usually a year.
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Coincident economic indicators
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Variables that reflect peaks and troughs in economic activity as they occur; examples include employment, personal income, and industrial production.
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Aggregate demand
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The relationship between the economy's price level and aggregate output demanded, with other things constant.
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Disposal income (DI)
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The income households have available to spend or to save after paying taxes and receiving transfer payments
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Labor force
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Those 16 years of age and older who are either working or looking for work.
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Labor force participation rate
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The labor force as a percentage of the adult population.
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Structural unemployment
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Unemployment because (1) the skills demanded by employers do not match those of the unemployed, or (2) the unemployed do not live where the jobs are.
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Disinflation
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A reduction in the rate of inflation.
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Cost-push inflation
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Sustained rise in the price level caused by a leftward shift of the aggregate supply curve.
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Leading Economic Indicators
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Variables that follow, or trail, changes in overall economic activity; examples include the interest rate, the unemployment rate, and the average duration of unemployment.
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Aggregate output
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A composite measure of all final goods and services produced in an economy during a given period; real GDP
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Stagflation
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A contraction, or stagnation, of a nation's output accompanied by inflation in the price level.
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Consumer price index (CPI)
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A measure of inflation based on the cost of a fixed market basket of goods and services.
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Unemployment rate
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The number unemployed as percentage of the labor force.
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Frictional unemployment
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Unemployment that occurs because job seekers and employers need time to find each other .
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Hyperinflation
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A very high rate of inflation.
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Demand-pull inflation
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A sustained rise in the price level caused by a rightward shift of the aggregate demand curve.
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