GDP
What does GDP stand for?
What is Gross Domestic Product
What is inflation?
What is the general increase in prices over time?
What does CPI stand for?
Consumer Price Index
What are the phases of a business cycle
expansion, peak, recession, and trough
This country is known for having the largest economy in the world.
United States
Name one of the three primary methods used to calculate GDP.
What is the Expenditure Method? (or Production Method or Income Method)
Which index is commonly used to measure inflation?
What is the Consumer Price Index (CPI)?
How is the CPI used in relation to inflation?
it measures the average change in prices paid by consumers over time
During which phase of the business cycle is economic activity increasing?
expansion
What is the official currency of Japan?
yen
What is the difference between nominal GDP and real GDP?
What is nominal GDP not adjusted for inflation and real GDP adjusted for inflation?
What happens to the purchasing power of money during inflation?
It decreases
What is the 'basket of goods' in the context of the CPI?
a collection of items used to track the price changes for consumers
What is a peak in the context of a business cycle?
the point where economic growth is at its highest before declining
Which economic system is based on supply and demand with minimal government intervention?
capitalism
Which GDP component includes consumer spending on goods and services?
What is Consumption?
What is cost-push inflation?
inflation caused by an increase in the costs of production
What is the base year when calculating CPI?
the year against which current price levels are compared to measure inflation
What is the term for the phase when the economy starts to recover after a trough
expansion or recovery
In which year did the global financial crisis, often called "The Great Recession," begin
2008
How does GDP per capita help compare the economic well-being of individuals in different countries?
What is by dividing GDP by the population, giving an average economic output per person?
What type of inflation occurs when demand for goods and services exceeds supply?
demand-pull inflation
How does CPI differ from the Producer Price Index (PPI)?
CPI measures consumer prices, and PPI measures prices from the perspective of sellers?
What typically happens to unemployment during a recession?
unemployment increases
What is the term for a situation where economic stagnation is accompanied by inflation?
stagflation