Chapter 3

Question 1

Topics that surround macroeconomics

Answer 1

Economic Growth, Unemployment rates, Rates of Inflation

Question 2

Make the economy work and allow people to earn money and spend it

Answer 2

Economic Markets

Question 3

Type of economy the United States has; relies on markets and government involvement fairly

Answer 3

Mixed Economy

Question 4

What percentage does the government spend on produced goods?

Answer 4

20%

Question 5

The value of all the financial goods and services produced in a country in a year; Measures the success of the economy

Answer 5

Gross Domestic Product (GDP)

Question 6

Publishes the GDP quarterly (estimated)

Answer 6

Bureau of Economic Analysis

Question 7

Actual production of goods and services valued at the base year’s price rather than current prices

Answer 7

Real GDP

Question 8

What does Real GDP indicate

Answer 8

Change in Production instead of growth of GPA by price

Question 9

Best measure of actual well being in the UNited States

Answer 9

Real GDP per Capita

Question 10

Number of individuals unemployed divided by the labor force which gives a percentage

Answer 10

Unemployment rate

Question 11

People who are legally eligible that are working or are actively looking for work

Answer 11

Labor Force

Question 12

Event where unemployment hit an all time high of 9.6%

Answer 12

The Great Recession

Question 13

Continual increase in the average price level

Answer 13

Inflation