Economic Indicators

Unemployment

100

Carlton loses his job as a bank teller when the ATM is invented.

What is structural unemployment

200

Johnny moves to Nashville after graduating from the University of Memphis to find a job. What type of unemployment is he experiencing?

Frictional unemployment

300

After the back-to-school rush in August, business dies down and Target lays off Joe

What is seasonal unemployment.

400

In order to be unemployed, a person exhibit these 2 qualities

1. Out of work

2. Actively looking for a job

500

What is the formula for calculating the unemployment rate?

(Number of unemployed people/total population) x 100

GDP

100

What does GDP measure?

Growth and wealth of a nation's economy.

200

What kind of GDP is used to measure the economy's growth in the current year?

Nominal

300

What is the formula for calculating GDP?

Consumption + Investment + Government Spending + Exports - Imports.

400

Real GDP adjusts for

Inflation

500

List at least 3 DIFFERENT types of goods that would NOT be counted towards GDP?

1. Secondhand sales (used)

2. Financial transactions

3. Non-market transactions

4. Intermediate goods

5. Underground economy

6. Transfer payments

Business Cycle

100

What is the highest point in the business cycle? Label it.

Peak

200

What is the lowest point in the business cycle where GDP is low and the unemployment rate is high? Label it.

The trough

300

What is the point where GDP is increasing and the unemployment rate is decreasing? Label it.

Expansion

400

What is the point on the business cycle where GDP is decreasing and the unemployment rate is increasing? Label it.

Contraction

500

What happens to GDP, inflation and unemployment during a recession?

1. GDP - Decreases

2. Inflation - Decreases

3. Unemployment - Increases

Aggregate S/D

100

Aggregate Demand measures

the total amount of goods that are consumed in a given year

200

How does an increase in aggregate demand affect inflation

Increases inflation

300

A decrease in aggregate supply causes this type of inflation

cost-push inflation

400

AD/AS equilibrium measures __________

Real GDP

500

How does increase in aggregate demand affect GDP, unemployment

1. Increase GDP

2. Decrease Unemployment

Inflation/Growth

100

Name 3 causes of economic growth.

1. New technology

2. Investment in capital

3. Discovery of New resources

200

What does inflation mean?

The overall price level has increased.

300

What is a negative effect of inflation?

Money loses its value

400

How is inflation measuered?

Using CPI (consumer price index)

500

What is the difference between a surplus and a deficit

A surplus means the government has higher revenues than spending

2. deficit means that a government is spending more than receiving income (revenue)