Business Cycle
This line is linear and grows over time
What is potential GDP
This market basket approach helps determine the inflation rate by comparing past year prices with current prices.
What is the Consumer Price Index or CPI?
The type of unemployment that results from new workers looking for their first job.
What is Frictional Unemployment?
This is GDP calculated by dividing the the population of a country
What is GDP per capita
The line that goes up and above or below the linear GDP line
What is Real GDP
The Calculation for the CPI Basket
Price current year/Price market basket of base year x100
GDP is often used to measure this.
What is the overall health of the economy.
The type of unemployment that results from the nature of changes in business.
What is Structural Unemployment?
This is GDP in current dollars.
What is nominal GDP?
The gap between the solid linear line and the trough
What is cyclical unemployment and/or recessionary gap.
A CPI of 150 indicates this
What is Inflation
The type of unemployment that results from work only being needed during certain months of the year.
What is seasonal unemployment?
The calculation for GDP Deflator?
Nominal GDP/Real GDP x 100
The highpoint of expansion, that preceeds contraction.
What is peak?
Inflation is considered a Macroeconomic topic because it affects this.
What is the economy as a whole?
To ensure that goods are not counted twice, GDP is calculated using only these.
What are final goods or final ouput?
The unemployment that is a result of a downturn in economic growth
What is cyclical unemployment.
Name 1 example of an item in the CPI market basket
Answers may vary.
The points in between the 1st peak and the 2nd peak in the business cycle
What is contraction to expansion (recession/recovery)
What is the key difference between CPI and GDP deflator?
CPI only calculates basket goods for consumers. GDP Deflator looks at all of GDP economic indicators.
The USA had a GDP of 25 trillion dollars in 2023, and had a 17 trillion dollar GDP in 2018. Calculate the percentage change of GDP between 2018 and 2023
What is 47%
What factors go into being counted as part of the labor force?
-Unemployed+employed
-16+
-No in jail, mentally ill, in school, or military.
Structural+Frictional Unemployment is otherwise known as what?
What is the Natural Rate of Uneployment