GDP
What does GDP stand for and what does is measure?
Gross Domestic Product. The total $ value of all goods and services produced within a country in one year
What does is mean to be "Unemployed" within the Labor Force?
Not having a job but actively looking for one.
What is Inflation?
Name the four phases of the Business Cycle, in order.
Expansion, Peak, Contraction, Trough
7
What does GDP Per Capita measure and how do you calculate it?
GDP/Population
What Unemployment Rate is considered "Full Employment?"
4-5%
What is a desirable Inflation Rate?
2-3%
In which phases of the business cycle would Unemployment be the highest?
Trough
Which goal is defined by an increase in GDP?
Economic Growth
Name the 4 Components of GDP
Consumer spending, Investment spending, Government spending, Net Exports
Name a group that does not count toward the Labor Force
Under 16
Retired
FT Student
Active Duty Military
Institutionalized
Homemaker
Discouraged
What happens if Governments put too much money into curculation?
-The money loses its value
-Prices drastically increase
-Hyperinflation
If Demand > Supply, which phase of the Business Cycle would we likely be in?
Peak
Social Security, Unemployment Insurance, and Food Assistance programs are part of the Economic Goal of...
Economic Security
Give an example of "Investment Spending"
Give an example of Frictional Unemployment
What is the difference between "Demand-Pull" and "Cost-Push" inflation?
Demand-Pull= Increase in Demand
Cost-Push= Decrease in Supply
Name a characteristic of the Expansion phase of the Business Cycle
Increased Spending/Production
Rising GDP
Decreased Unemployment/Increased Hiring
Which goal is defined by steady prices and avoiding major fluctuations in Unemployment/Inflation
Economic Stability
What is the difference between Nominal and Real GDP?
Real GDP is adjusted for Inflation
Calculate Unemployment if the population is 120,000,000, total Labor Force is 80,000,000, and 7,000,000 are unemployed.
7/80= 0.0875
0.0875 * 100= 8.75%
Calculate the Inflation Rate from 2024-2025 if the CPI in 2024 was $250 and the CPI in 2025 was $261.
261-250=11
11/250= 0.044
0.044*100 = 4.4%
An long and extended period of Contraction
Define Economic Efficiency
Using resources wisely so that the most goods and services are produced with the least waste