Gross Domestic Product
Is the market value of all final goods and services produced within a country in a given time period.
What is GDP?
People without employment who are seeking employment and are available for employment.
Who are the unemployed?
Is the growth of the overall level of prices in an economy.
What is inflation?
A periodic but irregular up and down movement of total production: expansion, peak, recession-trough.
What is the business cycle?
Producing at a lower opportunity cost.
What is comparative advantage?
The value off goods and services that a country's people enjoy, on average; measured by real GDP per person.
What is the standard of living?
Daily Double!!!
The unemployment rate when no cyclical unemployment is present?
Measures average prices paid by urban consumers for fixed market basket of consumption goods and services;
= 100 x (market basket now/market basket at the base year)
What is Consumer Price Index (CPI)?
A phase in the business cycle of increasing economic activity.
What is expansion?
Demonstrated with a bowed outward PPF.
What is the law of increasing opportunity costs?
What is the expenditure approach to GDP vs. income approach to GDP?
Unemployment from normal market turnover.
What is frictional unemployment?
The common goods are services that a purchased by a society as a whole.
What is the market basket?
A phase of the business cycle where there is a decrease of economic activity.
What is contraction?
Daily Double!!!
What was Mr. Hennessey's favorite cartoon series as a child?
Daily Double!!!!!!!!!
= 100 x (nominal GDP/real GDP)
= 100 x (# of unemployed workers/labor force)
= 100 x [(CPI of the current year - CPI of base year)/CPI of base year)
What is the inflation rate?
A short-term economic downturn.
What is a recession?
The boundary of combinations of production between two goods or services using factors of production.
What is the production possibilities frontier (PPF)?
What is real GDP?
Unemployment from mismatches between the needs of employers and the skills and talents of workers.
The price level is falling and inflation is negative.
What is deflation?
The highest point in the cycle where expansion ends and the lowest point in the cycle where contraction ends.
What are peaks and troughs?
A good consumed instead of another good.