Chapter 6
Gross Domestic Product
What are the three determinants of Labor Productivity?
Human Capital, Physical Capital, and Technology
What is the term for unemployment that is closely tied to the business cycle?
Cyclical Unemployment
What is inflation?
rise in prices in the economy
What is a business cycle?
a full cycle of growth and recession
What is the formula for GDP?
C + I + G + (X - M)
What is convergence?
When lower income countries advance and grow faster than countries with high income
What is the term used to describe the percentage of people in the labor force but are jobless?
Unemployment rate
What is deflation?
Severe negative inflation/when prices are falling
Who created the song Boom Boom Pow?
The Black Eyed Peas
How do you find Real GDP?
Nominal GDP * (Price Index TO/Price Index From)
What is the most important contributor to economic growth?
Technology
What is the term for the level of output that an be obtained at the natural unemployment rate?
Potential GDP
when a price, wage, or interest wage is adjusted for inflation
What is the base year?
a arbitrary year that economists label with an index number of 100
What is the better way of determining a country's productivity?
GDP per capita
What is the average US population growth?
About 1% but is declining
When is the economy considered to be in full employment?
When actual unemployment rate = natural unemployment rate
What are COLAs? (Definition)
(Cost-of-Living-Adjustments) A contractual provision that wage increases will keep up with inflation.
Who sang August?
Taylor Swift
In a business cycle, what is the lowest point of output called? (HINT: Not Recession)
Trough
What does Gerschenkron refer to when he means "the advantages of backwardness?"
Either Convergence or Low developed countries are easier to develop rather than developed countries.
What is the term for people are mislabeled in the categorization of employed, unemployed, or out of the labor force?
Hidden Unemployment
When did the US closely experience hyperinflation?
Civil War
What are we here at HCH?
Family