Economic Performance Test Flashcards
Define Business Cycle.
series of growing and shrinking periods of economic activity
Define Consumer Price Index
Measure of changes in the prices of goods and services commonly purchased by consumers.
-Used by economist to gauge the inflation rate or rate of change in prices over a set period of time
Define Durable Good.
idk
Define GDP
(Gross Domestic Product) the market value of all final goods and services produced in a nation in a given time period
Define Inflation
A sustained rise in the level of prices and a sustained fall in the purchasing power of money
Define Net Exports
goods/services produced in the nation but sold in foreign nations, minus values
Define Non-Durable good
idk
Define Productivity
amount of output produced from a set amount of inputs.
Define Real GDP
- GDP corrected for change in prices from year to year
- estimate of GDP if prices remained constant
- more accurate measure of economic performance
Define Real GDP Per Capita
- real GDP divided by total population
- reflects each person’s share of real GDP
- usual measure of a nation’s standard of living, not the quality of life
Define Underemployment
idk
Define Unemployment rate
idk
How is economic growth measured?
GDP
What does GDP measure?
idk
What are the 4 components of GDP?
Consumption, Investments, Government spending and Net Exports
What items are not included in GDP?
personal investments
What are the requirements of GDP?
- has to be a final product or service
- must be produced in a given time period (this year)
- must be produced within a nation’s borders
What is the usual measure of a nation’s standard of living?
idk
How does productivity increase?
when the same amount of inputs produce more output
What are the effects of inflation?
idk
How is the labor force for each nation calculated?
idk
How is the unemployment rate calculated?
idk
What are the 4 types of unemployment? Explain each type
idk
What are the 4 types of the business cycle? Explain each part.
idk
What is the difference between a depression and a recession?
idk
What is the lowest point of the business cycle?
trough
What is the highest point of the business cycle?
peak
How do you calculate GDP?
C+I+G+X=GDP
