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
