Vocabulary (b)

Question 1

An increase in real output as measured by real GDP or per capita real GDP.

Answer 1

Economic Growth

Question 2

Define Unemployment.

Answer 2

The number of people in the civilian work force over the age of 16 without jobs who are actively seeking work.

Question 3

Meaning of CPI.

Answer 3

Consumer Price Index

Question 4

Define Inflation.

Answer 4

A rise in the general or average price level of all the goods and services produced in an economy .

Where money is worth less so prices start to rise.

Question 5

A decline in real GDP combines with a rose in the price level.

Answer 5

Stagflation.

Question 6

Meaning of (AS)

Answer 6

Aggregate Supply

Question 7

A schedule(graph) that shows the value of output (real GDP) that would be produced at different price levels.

Answer 7

Aggregate Supply

Question 8

Define Aggregated Demand and give the abbreviation.

Answer 8

AD ; A graph that shows that shows the value of output (real GDP) that would be demanded at different price levels.

Question 9

The Market Value of all final goods and services produced in a country in a calendar year.

Answer 9

Gross Domestic Product (GDP)