GDP is Gross!
Total dollar value at current prices of all final goods and services produced in a nation over a given period
What is Gross Domestic Product (GDP)?
A measure of price changes for a typical basket of consumer products?
What is the Consumer Price Index (CPI)?
Unemployment due to being temporarily between jobs or looking for a first job
What is frictional unemployment?
Products that will not be processed further and will not be resold - those included in GDP
What are final products?
This type of unemployment is the result of an economy in recession
What is cyclical unemployment.
The (illegal) means by which firms in oligopolistic maintain price unity.
What is collusion?
Nominal income / CPI (in hundredths)
What is real income?
When too many people have too much money for too few goods.
What is demand-pull inflation.
A type of government purchase made to households or other levels of government not included in GDP
What is a transfer payment? Also not included financial transactions & sales of used goods.
The value of GDP discounted by the rate of inflation
What is real GDP
C + I + G + (X-M)
What are consumption, investment, government spending, and net exports - What are the parts or components of GDP
This type of inflation is the result of a supply-shock
What is cost-push inflation?
Underemployment, discouraged workers and dishonesty
What are three drawbacks of the official unemployment rate?
Purchases of goods and services from the rest of the world
What are imports? Net loss to GDP. Exports - Imports added to GDP (X-M)
A laid off bank teller who so far has not had success finding another job due to ATMs
What is an example of someone facing structural unemployment?
Ford's purchase of tires for their F-150 pick-up trucks for sale
What are intermediate goods - not counted in GDP.
This type of market structure has the lowest barriers to entry and exit
What is perfect competition
Geographic, economies of scale, legal protection, exclusive ownership
What are the causes or reasons for a monopoly.
The problem of workers being underutilized either as part-time workers or by working at jobs not appropriate to their skills or education
What is underemployment?
Expansion, Peak, Contraction, Recession, Trough
What are the phases of the business cycle.
Product quality, composition of output, income distribution, leisure and the environment
What are five limitations of GDP?
An employment rate of 5%
What is the natural rate of unemployment.
Breakfast cereal, toothpaste, running shoes, soda are sold in this kind of market structure
What is monopolistic competition?
Unemployment due to a mismatch between people and jobs
What is structural unemployment?
The value of all goods and services in a particular year
What is nominal GDP