GDP/GNP
What is GDP?
Gross Domestic Product
What are the four types of unemployment?
Frictional, Structural, Seasonal, Cyclical
What is Inflation?
General Increase in prices over time.
What is the highest point of growth called in the business cycle?
Peak
What is the poverty threshold?
Level at which you can support your family or household
What is GNP?
Gross National Product
What is an acceptable percent of unemployment?
4-6%
What is reeeeally bad inflation known as?
Hyper-Inflation
When a country is experiencing a period of economic growth, it is in a period of?
Expansion
What does it mean to be "working poor/ poverty?"
Working a job and still living below the poverty line
What does GDP not measure?
Non Market Activities, the Underground Economy, Negative Externalities, and Quality of Life.
Jack has a Master's Degree in Social Sciences, but he works at Men's Wearhouse. Jack would be considered _____________.
Underemployed
How does Low Unemployment lead to inflation?
Increasing Wages > Increases Prices > Increases Inflation
When a country is experiencing a period of economic decline, it is in a period of?
Contraction
Name at least three of the six causes of poverty.
Changes in family structure, Where people live, Unequal treatment, Low-wage service jobs, Lack of education, Working poor
How is Real GDP measured?
Adjusted for Inflation/Unchanging Dollars
Who is not included in the unemployment rate?
Full-time Students, Military, the Institutionalized, and Discouraged Workers
It causes someone to be unable to purchase as many goods or services as they could before the inflation occurred
What is the opposite of the "peak" in the business cycle?
Trough
Name at least four types of Government assistance alloted those living in poverty?
Welfare, Food-Stamps, Section-8-Housing, Unemployment Benefits, Workfare, Social Security Benefits
Which one (GDP or GNP) has to do with the same business, but in different countries?
GNP
Full employment is reached when there is zero _______ ___________.
Cyclical Unemployment
Where does inflation come from?
When the demand for goods and services exceeds the supply available at current prices
What is happening when a country's economy is experiencing two consecutive quarters of GDP decline?
A Recession
What is equity?
Providing resources to someone based on their individual needs and circumstances