Circular Flow Model and GDP
The three letter abbreviation, GDP, spelled out
What is Gross Domestic Product?
The factor that is included in real GDP but not nominal GDP
What is inflation?
One of the 4 qualifiers to be counted in the labor force.
What is At least 16, Not in the military, Not institutionalized, or Otherwise unable to work?
What is the rate at which the general price level is increasing over time? (As a percentage)
The Y axis of the Business Cycle
What is Time?
The center of the circular flow model
What is the government?
The measure of a countries wealth in proportion to their population.
What is GDP per capita?
The type of unemployment if a man is laid off of his job at a chevy factory because of a decrease in demand for cars.
What is Cyclical Unemployment?
One type of unanticipated inflation
What is Menu Prices, Shoe Leather Costs, Loss of Purchasing Power, or Wealth Redistribution?
The low point in the business cycle before improving
What is a trough?
The line on the circular flow model that moves from households to government
What is net taxes?
the purpose of using the GDP deflator
What is to measure the effects of inflation?
The labor force participation rate formula
What is (Labor Force / Adult Population) × 100?
The definition of Substitution Bias
What is consumers switching to a cheaper alternative as the prices of goods and services rise?
When the economy is on its way to full employment from a trough
What is recovery?
The equation to find Nominal GDP
What is C+I+G+Xn?
The definition of the black market
What are illegal goods and services that provide monetary value?
The Natural Rate of Unemployment (percentage)
What is around 4-6 percent?
The factor that is measured by the CPI
What is the changes in the cost of living over time?
The dotted line and the Solid line in the Business Cycle.
What are Potential Output and Actual Output?
3 of the 5 things that are not included in GDP
What are illegal activities, unpaid work, transfer payments, intermediate goods, or depreciation?
The 4 letter acronym, PIES, spelled out
The unemployment rate if the adult population in Town, Personland is 50, and there are 24 people who are employed, with 6 people who are unemployed.
What is 20 percent? (6/30 x 100)
One Group of People who Can Benefit from Uanticipated Inflation
What is Borrowers with fixed interest rates, Owners of assets, or Firms that can cut real wages?
The duration of negative GDP growth for an economy to be considered in a recessionary gap.
What is 2 straight fiscal quarters (6 months)?