Solved Questions

The official unemployment rate may understate the true rate of unemployment because of discouraged workers who no longer actively seek work and are excluded from the statistics. Increases in the duration of unemployment may reflect a general downturn in economic activity that depresses job openings,...

Inflation: A general and progressive increase in prices. CPI (Consumer Price Index): A measure of the overall cost of the goods and services bought by a typical consumer. Inflation rate: The percentage increase in the price level from one year to the next. Inflation Rate Formula: (Price index in yea...

Financial institutions reward savers with the following, except wages. Economic investment refers to the expansion of the economy's productive capability. Banks and other financial institutions promote economic growth by helping to direct household savings to businesses that want to invest. If an ec...

Annual Percentage Rate (APR): The percentage cost of credit on an annual basis. Automatic Teller Machine (ATM): A machine used to conduct business with a financial institution, also known as a cash machine. Bank: A for-profit financial institution that offers personal loans, mortgages, and other se...

Imports: Goods brought into the country. Exports: Goods sent to other countries. Trade surplus: When exports exceed imports. Trade deficit: An excess of imports over exports. Balance of trade: The relationship between a country's exports and imports. Positive or negative balance of trade and its im...