AP Macroeconomics

The stated rate, not adjusted for inflation.

The nominal rate minus expected inflation; the rate that guides many saving and investment choices.

Short-term joblessness while people search or move between jobs.

Joblessness from a mismatch of skills, location, or institutions.

The combination of falling output and a rising price level, often from a leftward SRAS shift.

The idea that an initial change in spending can cause a larger change in equilibrium output.

A fall in the value of a currency relative to another currency.

An increase in an economy’s capacity to produce goods and services, often shown as an outward PPC shift.

A model of how spending, income, and resources move between households and firms.

The ability to produce more of a good with the same resources, or the same good with fewer resources.

The rate at which one good exchanges for another between trading partners.

The value of final production measured with constant prices so that quantity changes stand out.

Employed people plus unemployed people who are actively seeking work.

A sustained rise in the general price level, measured with a price index.

A period of falling real output and weaker labor-market conditions.

The total quantity of real output demanded at each price level.