GDP
The equation to Calculate GDP.
GrossDomesticProduct = Investment + Consumption + Government + ( eXports - iMports )
This type of unemployment occurs when someone is between jobs. Example: A graduate moving from a casual job to a part time role for a different employer.
What is frictional unemployment?
Is the rise in prices and decline in purchasing power of consumers.
What is inflation?
Government use of taxation and spending for economic objectives.
What is fiscal policy ?
Is the difference between a country's exports and imports for a given period.
Dividing GDP by the population.
What is GDP per capita?
The main difference is that this type of unemployment is related to the business cycle.
What is Cyclical unemployment?
is a measure of the average change in prices paid by urban consumers for a market basket of consumer goods and services.
What is Consumer Price Index?
Influence economy through controlling inflation.
What is monetary policy?
Is selling goods and services produced in the home country to foreign markets.
What are exports?
the market value of all final goods and services produced within a nation during a year.
What is GDP?
Type of unemployment linked to seasonal labor demand fluctuations.
Like farmers,or Christmas sales
What is seasonal unemployment?
Is the entity that controls inflation by setting interest rates and controlling money supply.
What is the Central Bank? Banxico
The Government increases spending to stimulate growth during a ______ stage of the economic cycle.
What is an economic contraction stage? An expansionary fiscal policy is then applied.
Human Development Index, Gini coefficient, Big Mac Index are other types of
What are Economic indicators?
Intermediate goods, used goods, financial transactions, transfer payments, informal economy
Mention one thing not accounted for when calculating GDP.
when companies hire outside firms to lower production costs. ex. Call centers in India
What is Outsourcing?
Is different from headline inflation which includes food and energy volatile prices.
What is core inflation? (subyacente)
Is a negative effect of an expansionist policy.
Is a negative effect of an contractionist policy.
What is more inflation ?
What is more unemployment?
This barrier to international trade is the limit to the amount of imported goods.
What is a Quota?
A pizza restaurant spends $4000 dollars on advertisement. How is that calculated in the GDP?
(I, C, G, X, M)
As Business Investment?
housewifes/stay-at-home parents, students, retired, institutionalized, handicapped...people who are above 15 years old and are not actively looking for work in the labor market.
What is "Poblacion economicamente Inactiva"?, not accounted for in the Unemployment rate.
Creeping 3%, walking 3-10%, galloping +10% and ____, +___% are types of inflation.
What is hyperinflation +50%?
expansion, peak, contraction, trough are the stages of
What is the business/economic cycle?
Countries should produce and export the good for which they have the lowest opportunity cost.