Equations
The equation for calculating nominal GDP
What is (Q1 x P1) + (Q2 x P2)?
A general increase in prices across an economy
What is inflation?
The main type of trade barrier
What is tariffs?
The current amount of national debt
What is $36,220,000,000,000.00?
A period of economic growth as measured by a rise in real GDP
What is expansion?
The equation for finding GDP per capita
What is Real GDP/total population of a country?
Inflation that is out of control
What is hyperinflation?
Place a limit on the amount of a good that can be imported and can only be set by the importing country
What is import quotas?
The 2 ways to deal with deficits
What is create money or borrow money?
An economic decline marked by falling real GDP
What is contraction?
The equation for measuring economic growth
What is (Real GDP Y2 - Real GDP Y1) / (Real GDP Y1) x 100
The ability to purchase goods and services
What is purchasing power?
The type of trade advantage that relies on opportunity cost to see which nation can produce more with less opportunity cost
What is comparative advantage?
The amount of money the government borrows for one budget
What is deficit?
If real GDP falls for 6 months straight, it is considered a ________.
What is recession?
The equation for calculating inflation
What is (CPI for Y1 - CPI for Y2) / (CPI for Y2) x 100?
How much money people actually have to spend after they pay their taxes
What is Disposable Personal Income?
The 4 leading U.S. trade partners
What is China, Canada, Mexico, and Japan?
The sum of all the government borrowing from before, minus the borrowings that have been repaid
What is debt?
A _______ occurs when a recession lasts longer than usual and is severe.
What is depression?
The equation for calculating CPI
What is CPI = (updated cost / base-period cost) x 100?
Measure of the market value of all goods and services produced by Americans in 1 year
What is Gross National Product?
Limits set by the exporting country, restricting the quantity of a product it will sell to another country
What is voluntary export restraint?
The last time that the U.S. government had 0 debt.
What is 1835?
The economy reaches a _ when it hits its lowest point.
What is trough?