Economics – Unit 5 Test
(Chapters 12-13)
The list of terms below is meant to guide your study. Please understand that there are things to study
“around” these words. I would suggest that you take the time to ensure that you are learning more
than just the basic definition so that you are prepared for the questions on the test!
Ex: If you’re looking at “GDP”…
 What is GDP?
 How do I calculate it?
 What does it measure?
 What does it NOT measure?
Business cycle
CPI
Cyclical unemployment
Deflation
Depression
Discouraged worker
Durable goods
Earned income tax credit
Final goods
Frictional unemployment
Great Depression
Gross Domestic Product
Hyperinflation
Inflation
Inflation rate
Intermediate goods
Investment
Leading indicators
Market basket
Capital deepening
Medicaid
Medicare
Nominal GDP
Nondurable goods
Nonmarket activity
Poverty
Poverty line/threshold
Poverty rate
Poverty tax credit
Productivity
Real GDP
Recession
Seasonal unemployment
Structural unemployment
Underemployment rate
Underground economy
Unemployed
Welfare