7.1
Dollar value of all final goods and services produced within a country’s borders in a given year
What is gross domestic product?
A period of macroeconomics expansion followed by a period of macroeconomics contraction
What is business cycle?
Accumulation of savings made available for investment
What is capital formation?
Period when people take time to find a job
What is frictional unemployment?
General increase in prices across an economy
What is inflation?
System used by economist to monitor the U.S economy
What is National Income Accounting?
Decline in real GDP combined with the rise in the price level
What is stagflation?
The proportion of disposable income that is saved
What is saving rate?
Countries become more open to foreign trade and investment in a trend
What is globalization?
Income that does not increase even if the prices go up
What is fixed income?
What is Intermediate Good?
Set of key economic variables that provide economists with economic data to predict future trends in a business cycle
What are leading indicators?
Real GDP divided by the total population of a country
What is Real GDP per capita?
Unemployment that rises during economic downturns and falls when the economy improves
What is cyclical unemployment?
The process by which rising wages cause higher prices and higher prices cause higher wages
What is wage-price spiral?
GDP measured in current prices
What is nominal GDP?
Steady, long term increase in real GDP
What is economic growth?
Increase in efficiency gained by producing more output without using using more inputs
What is Technological progress?
Working at a job for which they are overqualified
What is underemployed?
That too much money in the economy causes inflation
What is quantity theory?
National Income - reinvested profits + other household incomes = ?
What’s is personal income?
1. Peak
2. Contraction
3. Trough
What causes a recession?
Money saved —> Money available for business investment
How saving leads to capital deepening?
Number of people unemployed divided by number of people in the civilian labor force multiplied by 100
How do you calculate the employment rate?
Higher prices affect your life.
How does rising prices affect your life?