Expendables
This is the best measure of a nation’s standard of living.
What is GDP per Capita?
Economists collect statistics on production, income, investment, and savings to calculate GDP.
What is national income accounting?
The four requirements for being considered a part of the labor force.
What is you must be (1) Above 16 years old, (2) Able and willing to work, (3) Not institutionalized (in jails or hospitals), and (4) Not in military, in school full time, or retired
An index used to measure shifts in general price level. Gathered by surveying businesses about a constant market basket of goods.
What is the Consumer Price Index (CPI)?
In the CPI index, this is the base year...it's value is always...
What is the first year?
What is 100?
The equation for the expenditure approach to GDP.
What is C+I+G+X-M?
the dollar value of all final goods and services produced within a country’s borders in one year.
What is GDP?
The three types of unemployment.
What is frictional, cyclical, and structural.
Helped or hurt by inflation? A man who lent out $500 to his friend in 1960 and gets paid back $500 in 2015.
What is hurt?
In the Circular flow model, households sell in the & firms buy in the...Firms sell in the & households buy in the...
What is the factor market?
What is the product market?
What GDP category does the following fall into: $120 Social Security payment to Bob
What is not included? (Transfer payment)
GDP denominated in current prices (quantity produced x price in the year produced).
What is Nominal GDP?
Two of these added together make the natural rate of unemployment.
What are frictional and structural.
Helped or hurt by inflation? An elderly couple living off fixed retirement payments of $2000 a month
What is hurt?
The highest and lowest points in the business cycle are called ________ and ________.
What is a peak and a trough?
What GDP category does the following fall into: Lego makes new $2M factory
What is "I" (investment)? (FoP: Capital)
These are not included in GDP.
What is (1) Intermediate Goods, (2) household production, and (3) Non-production transactions - financial and used goods Non-market and illegal activities.
A stockbroker who lost her job due to a downturn in the economy and is searching for work. A VCR repairman who lost his job during the recession and is looking for work. Which one is structurally unemployed?
What is the VCR repairman?
Helped or hurt by inflation: Someone who borrows $1000 at 5% interest.
What is helped?
In the business cycle, the space between the highest point and the lowest point is called this.
What is a recession?
The four categories of the income approach to GDP.
What are W/L (labor income), R (rent), I (interest), and P (profit)?
GDP that accounts for inflation in constant, unchanging dollars.
What is Real GDP?
The three items not accounted for in the unemployment rate.
What is (1) Discouraged Workers, (2) Underemployed Workers, and (3) Race/Age Inequalities.
Amanda negotiates a raise of 3%. During this time, inflation is 8%. Who fares better during this year (Amanda or her employer)?
What is her employer?
The CPI is sometimes criticized for this.
What is (1) the substitution effect, (2) new products, and (3) product quality?