2.01 Economic Goals

Try It

Economic Goals Vocabulary Review

Match each term to its definition.

Terms:

1. Trade surplus
2. Gross Domestic Product (GDP)
3. Deflation
4. Frictional unemployment
5. Trade deficit
6. Inflation
7. Structural unemployment

Definitions:

• A reduction of the general level of prices in an economy
• Unemployment that occurs as workers change jobs or enter the labor force.
• The value of a country's exports of goods and services is greater than its imports
• Economic growth, or output of goods/services
• The value of a country's imports of goods and services is greater than its exports
• When a person loses their job because their skills are no longer needed or their job was outsourced abroad.
• A rise in the overall price of goods/services

Answers:

1. A reduction of the general level of prices in an economy

   Answer: Deflation

2. Economic growth, or output of goods/services

   Answer: Gross Domestic Product (GDP)

3. The value of a country's exports of goods and services is greater than its imports

   Answer: Trade surplus

4. The value of a country's imports of goods and services is greater than its exports

   Answer: Trade deficit

5. Unemployment that occurs as workers change jobs or enter the labor force.

   Answer: Frictional unemployment

6. A rise in the overall price of goods/services

   Answer: Inflation

7. When a person loses their job because their skills are no longer needed or their job was outsourced abroad.

   Answer: Structural unemployment