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Major Economic Indicators
GDP
Inflation
The Business Cycle
Unemploy-ment
100
An Economic Indicator that shows price stability. Weighted average of prices of goods & services by wage earners.
What is Consumer Price Index?
100
The market value of all the final goods and services produced within a country in a given time period.
What is Gross Domestic Product or GDP?
100
A rising general level of prices
What is inflation?
100
High economic activity Increase in production of goods and services Unemployment rate usually falls
What is Expansion?
100
Type of unemployment caused by workers quitting jobs because they are dissatisfied or between jobs.
What is Frictional Unemployment?
200
Shows likelihood of economic growth in the future (investment)
What is the Interest Rate?
200
The value of the final goods and services produced in a given year when valued at constant prices (adjusts for inflation).
What is Real GDP?
200
The type of inflation that is caused by demand.
What is Demand-Pull Inflation?
200
The Economy is thought to have touched bottom.
What is the Recession Phase?
200
Type of unemployment caused by a recession or unstable economic times.
What is Cyclical Unemployment?
300
Helps to indicate the place of the U.S. within the international economy. Name one of the two indicators that demonstrates this.
What is the Trade Balance and/or the Exchange Rate?
300
Doesn't include black market goods & services. Doesn't include goods & services without receipt of exchange. Doesn't tell what types of goods & services have been produced by a nation.
What are weaknesses of GDP?
300
The result of rising per/unit production costs.
What is Cost-Push Inflation?
300
Downturn in the economy Sales down Unemployment rises
What is the Contraction Phase?
300
Type of unemployment caused by a rapid change in the character of the economy.
What is Structural Unemployment?
400
Helps us to understand the current health of an economy and future direction.
What are Economic Indicators?
400
The value of the final goods and services produced in a given year valued at the prices that prevailed in that same year (actual prices).
What is Nominal GDP?
400
Fixed-Income Receivers Savers Creditors
Who is hurt by inflation?
400
The economy is said to be "turning around".
What is the Recovery Phase?
400
Type of unemployment caused by a change from one season or time period to the next.
What is Seasonal Unemployment?
500
Gross Domestic Product Housing Starts Retail Sales Unemployment Rate
What are four indicators that help in the understanding of output, demand, and jobs?
500
GDP=C+I+G+X C= I= G= X=
What is C=Personal Consuption (durable & non-durable goods & services) I=Private Investments (capital goods or rental housing) G=Government Purchases X=Imports-Exports
500
Flexible Incomes Receivers If you receive Cost of Living Adjustments (COLAs) Debtors
Who is Unaffected or Helped by Inflation?
500
The four Phases of the Business Cycle
What is expansion, contraction, recession, and recover?
500
Unemployment level (percentage) acceptable for a healthy economy.
What is < 4%?