Question

_____ occurs with economic downturns in the economic cycle.

Answer 1

frictional unemployment
unemployment that occurs when people take time to find a job

seasonal unemployment
unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season

structural unemployment
unemployment that occurs when workers' skills do not match the jobs that are available
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cyclical unemployment
unemployment that rises during economic downturns and falls when the economy improves

census
population count

unemployment rate
the percentage of the labor force that is unemployed

full employment
the level of employment reached when there is no cyclical unemployment

underemployment
workers are overqualified for their jobs or work fewer hours than they would prefer

discouraged worker
a person who wants a job but has given up looking

inflation
a general and progressive increase in prices

purchasing power
a comparison of income versus the relative cost of a set standard of goods and services in different geographic areas

price index
an index that traces the relative changes in the price of an individual good (or a market basket of goods) over time

Consumer Price Index (CPI)
an index of the cost of all goods and services to a typical consumer

market basket
a representative collection of goods and services

inflation rate
the rate of change of prices (as indicated by a price index) calculated on a monthly or annual basis

chronic inflation
Inflation that rises steadily from month to month over a long period.

hyperinflation
When the German economy tried to print bills to pay off their debt, inflation rates of 40% a day

quantity theory
theory that too much money in the economy causes inflation

Answer 2

Inflation occurs when economic down turns are experienced in the economic cycle, inflation is the sudden shooting of the prices of products in the market, this is enables the government to raise more revenue for curbing the downturns that has already occurred in the economic cycle, the downturns have got several causes including corruption