8th Grade Social Studies Chapter 7 Vocab Quiz
| A | B |
|---|---|
| depression | a period of low economic activity and widespread unemployment |
| Enlightment | movement during the 1700’s that spread the idea that knowledge, reeason and science could improve society |
| republic | a government in which citizens rule through elected representatives |
What term means a period of low economic activity and high unemployment?
What Is Stagflation? Stagflation is characterized by slow economic growth and relatively high unemployment—or economic stagnation—which is at the same time accompanied by rising prices (i.e. inflation).
Is a period of low economic activity combined with a rise in unemployment?
depression. A period of low economic activity and rising unemployment.
Is it good to have cash during recession?
Still, cash remains one of your best investments in a recession. If you need to tap your savings for living expenses, a cash account is your best bet. Stocks tend to suffer in a recession, and you don’t want to have to sell stocks in a falling market.
Which economic term means there is a period of slow economic growth with high unemployment?
Stagnation
What Is Stagnation? Stagnation is a prolonged period of little or no growth in an economy. Real economic growth of less than 2% annually is considered stagnation, and it is highlighted by periods of high unemployment and involuntary part-time employment.
What is the term for decreased economic activity and increased unemployment?
What is a Recession? A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. It had been typically recognized as two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise in unemployment.
Is a period of slow or no economic growth?
Economic stagnation is a prolonged period of slow economic growth (traditionally measured in terms of the GDP growth), usually accompanied by high unemployment.
Is there a relationship between economic growth and unemployment?
There is a clear relationship between the two, and many economists have framed the discussion by trying to study the relationship between economic growth and unemployment levels. Economist Arthur Okun first started tackling the discussion in the 1960s, and his research on the subject has since become known as Okun’s law.
When does the trough of the economic cycle occur?
Peak growth typically creates some imbalances in the economy that need to be corrected. This correction occurs through a period of contraction when growth slows, employment falls, and prices stagnate. The trough of the cycle is reached when the economy hits a low point and growth begins to recover.
How does Okun’s law describe economic growth and unemployment?
So, for illustration, if the potential rate of GDP growth is 2%, Okun’s law says that GDP must grow at about a 4% rate for one year to achieve a one percentage point reduction in the rate of unemployment.” 3 How Does Okun’s Law Describe Unemployment?
How long does an economic expansion usually last?
Learning about economic expansion and contraction patterns of the past can assist in forecasting potential future trends and identifying investment opportunities. Expansions last on average about four to five years but have been known to go on anywhere from 12 months to more than 10 years.
