GDP
What does GDP stand for?
What is Gross Domestic Product - Gross meaning 'All', Domestic meaning 'in the USA', and Product meaning 'all goods and services.'
The top point of a business cycle is called this _______. While the bottom point is referred to as this _______.
What is the peak and the trough?
Income not used for consumption is referred to as this.
What is Savings?
The average of all prices of all products in the economy is known as this.
What is price level?
A steady, long-term increase in GDP is known as this.
What is economic growth?
These are the 2 different ways to measure GDP.
What is Expenditure and Income? Expenditure consists of all sales of good/services. Income consists of all incomes in the economy.
A prolonged economic contraction leads to this ________. And an even longer contraction will lead to this ________.
What is a recession? What is a depression?
These are 2 examples that the gov't promotes techological progress/economic growth.
What is patents and basic research?
What effect does fear about the economy have on consumers?
What is consumers will decrease spending and save more. GDP will be reduced in the short run.
Going from left to right on the aggregate demand curve, real GDP rises/falls as price level rises/falls.
What is rises, falls?
This mesurement calculates GDP using a base year, and is frequently used by economists in detemining whether the U.S. economy is growing from year to year.
What is Real GDP?
A decline the Real GDP coupled with an increase in the price level is known as this.
What is stagflation?
Capital deepening is an increase in capital per worker. Give 2 ways (physical) and (human) that capital can deepen.
What is physical (buy new computers, buildings, factories) human (more education)?
Name at least 3 out of 4 of the leading economic variables.
What is external shocks, consumer expectations, interest rates, and business investment?
Economists determine the level of technological progress by this equation: ____________.
What is Technological Progress = Real GDP - Capital - Labor?
The proportion of disposable income that is saved is this.
What is the savings rate?
This agency maintains the National Income and Accounting System.
What is U.S. Dept. of Commerce?
When drawing an Aggregate Supply Curve and an Aggregate Demand Curve, this is written on the y-axis, and this is written on the x-axis.
What is y - price level and x - Real GDP
Provide both an example of a positive and negative economic shock.
What is Positive - great weather leading to better crop yields. Negative - War, Natural Disaster
Higher savings leads to economic growth. How?
What is more capital is available for investment, which then leads to capital deepening. C=S.
Imports of these types of goods will lead to economic growth.
What is long-term capital investment
An international crisis has caused consumers to save their money and postpone big purchases. This will have this effect on Aggregate Demand and GDP.
What is Aggregate Demand will decrease and GDP will decrease.