GDP and Circular Flow
This is the correct formula for the expenditures approach to calculating GDP.
If a worker voluntarily quits a job to search for a better job, this worker is experiencing this type of unemployment.
What is Frictional Unemployment?
Inflation occurs when there is a sustained increase in this measurement of the economy.
What is the Average Price Level?
This real GDP tracks aggregate output using this state of prices.
What are constant prices?
These are the two PHASES of the Business Cycle.
What are EXPANSION and RECESSION/CONTRACTION?
Total spending in an economy is equal to total income according to this model of economic activity.
What is the Circular Flow?
If a cashier loses their job because of a company's switch to self-checkout stations, this person would be experiencing this type of unemployment.
What is Structural Unemployment?
This metric of inflation measures the price changes in a specific group of goods and services purchased by consumers.
What is the Consumer Price Index (CPI)?
This price index measures the price level changes in all of the goods and services produced throughout an economy.
What is the GDP Deflator?
These are the two TURNING POINTS of the Business Cycle.
What are Peak and Trough?
If consumer purchases of education and medical care were could as investment rather than consumption, this would be the result to GDP.
What is No Change?
This is the name of the economy's long-run equilibrium unemployment rate.
What is the Natural Rate of Unemployment?
This would be the inflation rate if the a country's CPI increased from 300 to 330 in a one-year period.
What is 10%?
In a given year, Nominal GDP was $100 Billion, and the GDP Deflator is 200, this is the value of real GDP in that year.
What is $50 Billion?
The correct order of the phases and turning points.
What is Trough, Expansion, Peak, Recession?
An example of this reason that GDP is not a complete measure of a country's economic activity would be Suzy mowing her family's lawn and babysitting her siblings is not counted in GDP.
What is household production?
If workers who are unemployed become discouraged and give up looking for work, this effect occurs on the unemployment rate.
What is a Decrease?
A new public policy that causes an unexpected increase in the average price level would hurt this group of people in the economy.
Who are lenders or people on fixed incomes?
This is the value of the GDP Deflator and the CPI in the base year.
What is 100?
This measure of the economy is going to decrease in an economic contraction, according to the Business Cycle Model.
What is real GDP?
Aside from the expenditures approach, this is the other method for calculating GDP.
What is the Income Approach?
These are the two characteristics that a person must possess in order to be considered "unemployed" from a statistical measure.
What is "jobless" and "wanting to have a job"?
This is the formula for calculation of the Consumer Price Index.
What is (Current Market Basket/Base Year Market Basket) x 100?
If a country's nominal GDP doubled between year 1 and year 2, but the real GDP stayed the same between year 1 and year 2, this is what really happened in the economy.
What is prices doubled?
In this type of output gap, the actual unemployment rate is less than the Natural Rate of Unemployment.
What is a Positive Output Gap?