Show:
Business Cycle
GDP
Unemployment
Inflation
Stocks and Finance
100
Check your notes
Draw the business cycle
100
The Gross Domestic Product is the value of all final goods and services produced by a country.
What is the definition of GDP?
100
Unemployment/Labor Force
What is the equation for unemployment?
100
A set of consumer goods and services that is used to compare changing price levels over time.
What is a market basket?
100
a portion of a profit, from a company, that is paid to a stock owner.
What is a dividend?
200
recessions, depressions
Downturns in a business cycle are known as________. Severe downturns are ____________.
200
Production approach, Income approach, expedeniture approach.
What 3 different types of approaches are there to calculating GDP?
200
A discouraged worker is someone who gave up looking for a job. NOT considered as unemployment. (Not in labor force)
What is the definition of a "discouraged worker"? Are they unemployed, employed or Not in labor force?
200
Frictional+structural+seasonal=natural unemployment.
What is a natural rate of unemployment?
200
Security for the repayment of a loan.
What is Collateral?
300
trough
Minimum economic output is called a
300
Y=C+I+G(X-M), consumption, investment, government spending, net exports
What does the expenditure approach consist of? What is the equation?
300
Those who have no job and are not looking for a job= • Retired • Full time students • Home makers • Volunteers & Institutional Population • Mental Institutions • Prison • Military
Who categorizes as "not in labor force?"
300
Consumer Price Index. Measures cost of living.
What is the CPI? What does it do?
300
Diverse portfolio of stocks and bonds.
What is a Mutual Fund?
400
Indicates an expansion
GDP Increase, Inflation Increase, Unemployment Decreases, Companies open new stores, homes are being built, stock prices increase.
400
Wages, Interest, Rent, Profit
What is the income approach, what does it consist of?
400
Temporary unemployment, individual is searching for a job.
What is frictional unemployment?
400
Food and beverage, education and communication, recreation, medical care, transportation, apparel, housing, other.
What is considered part of the CPI?
400
A system that allows the transfer of money between borrowers and savers.
What is a financial system?
500
GDP Decreases
, Inflation Decreases, Unemployment Increases, Companies Close Stores, Homes Are in Foreclosure, Stock Prices Decrease
What is a business cycle? What Indicates a Recession?
500
Inflation rate= NewCPI-OldCPI/OldCPI. & Old Year Price in New Years Dollars=Old Year price+(Old year price*Inflation rate)
How to calculate inflation? What equations do we use?
500
the minimum interest rate set by the Federal Reserve for lending to other banks. It is how banks interact with their customers. If the discount rate is really high, banks will not want to make risky loans. If the discount rate is low, banks will make riskier investments.
What is a Discount Rate?