Measuring Economic Activity
How is GDP Per Capita calculated
Dividng the total GDP by the population
what are the stages of the business cycle
prosperity, recession, depression, recovery
true or false: a major source of investment funds is personal savings
true
Portion of people in the business force with no jobs but are looking jobs
unemployment rate
is a number that compares prices in one year with prices in some earlier base year
price index (CPI)
How is GDP calculated
by getting the total value of all goods and services
true or false: Deflation results in lower buying power of money
false
what three main sources does the money for capital projects come from
personal savings
stock investments
bonds
Output in relation to a unit of input such as a worker
Productivity
means a decrease in the general level of prices
deflation
refers to salaries and wages paid to individuals
Personal Income
the phase of the business cycle in which unemployment is highest is
Depression
what would most likely cause a budget surplus for government?
lower spending
the total amount owed by the federal government is
national debt
when a government spends less than it takes in
budget surplus
true or false: GDP includes the work you do for yourself
false
what percent of inflation is good for stimulating the economy?
2-3%
represents ownership in a corporation
stock
output per person
GDP per capita
what are intermediate goods
what are the three types of interest rates
prime rate
discount rate
t-bill rate
if you purchase a corporate or government bond, you are a
creditor
the sales of durable and non durable goods bought by customers
retail sales
money spent by a business for items that will be used over a long period of time
capital spending