Chapter 1 Flashcards
1
Q
What is macroeconomics
A
The study of the economy as a whole
2
Q
What GDP measures?
A
total income of everyone in the economy
3
Q
What is GDP per person?
A
Income of average person in the economy
4
Q
What is inflation rate?
A
Measures how fast prices are rising
5
Q
What unemployment rate measures?
A
The fraction of the labor force that is out of work.
6
Q
Define recessions?
A
Mild decline in the REAL GDP
7
Q
Define depressions?
A
Severe decline in the real GDP
8
Q
Define deflation?
A
Periods of falling prices
