GDP
GDP is a measure of what?
Overall spending in an economy.
GDP Per Capita is a measure of what?
Overall spending in an economy per person.
Inflation is a measure of what?
Unemployment is a measure of what?
The number of people in the labor force who are actively looking for a job but don't have one.
A kilometer is a measure of what?
Distance
Give the formula for GDP
GDP = C+I+G+NX
How is GDP per capita calculated?
GDP per capita = GDP/Population
How can inflation be a good thing?
Inflation encourages further spending by consumers and keeps the economy growing.
Who is considered to be in the labor force?
Working age people who are working or actively looking for a job.
Mass (not weight)
What is the difference between nominal and real GDP?
Nominal GDP is not adjusted for inflation, Real GDP is adjusted for inflation.
What is the difference between nominal GDP per capita and real GDP per capita?
Real GDP per capita is adjusted for inflation, nominal GDP per capita is not.
What does CPI measure, and how is it calculated?
It measures the cost of consumer goods and is calculated based on a "basket" of common consumer goods
Give the formula for calculating the unemployment rate
Unemployment Rate = (# of Unemployed People/# of People in the Labor Force) X 100
A byte is a measure of what?
Digital information
How is real GDP calculated?
Nominal GDP divided by the GDP Deflator
GDP per capita allows us to compare what?
How well off people in different countries are.
What group of people benefits from inflation?
Borrowers
What are the three types of unemployment?
Structural - Long term due to changing skill requirements
Frictional - Short term due to changing between similar jobs
Cyclical - Created by a downturn in the economy, may lead to further unemployment
A watt is a measure of what?
Power/energy flow
Which component of GDP is the largest contributor to the United States' GDP?
Consumer Spending
Why might GDP per capita not be the best measurement of how well off the average person is in a country?
Since it is an average it won't account for income inequality.
Why can't inflation sit at 0%?
Because the government encourages inflation in order to prevent deflation.
Why can't the unemployment rate ever be 0%?
Because structural and frictional unemployment will always exist and create a Natural Rate of Unemployment.
What country was James Watt, inventor of the steam engine and namesake of the watt, born in?
Scotland