GDP
What is the primary formula used to calculate GDP?
Y=C+I+G+NX
How is the unemployment rate calculated?
Unemployed divided by labor force × 100
What is hyperinflation characterized by?
Monthly inflation rates exceeding 50%
Which international organization regulates global trade rules?
The World Trade Organization
Which component of the GDP formula typically represents the largest portion of GDP?
(C) Consumer consumption
Which of the following is NOT included in GDP calculations?
Stock market transactions
What type of unemployment occurs when jobs are eliminated due to technological advancement?
Structural unemployment
What type of inflation occurs when prices rise at a rate of less than 3% annually?
Creeping inflation
What is foreign debt?
The part of a country’s total debt that is owed to foreign creditors
How does the BLS define the labor force?
Employed plus unemployed people over 16 who can work
Real GDP differs from nominal GDP because it:
Is adjusted for inflation
What type of unemployment is considered unavoidable in a large economy?
Frictional unemployment
What is the Consumer Price Index (CPI) primarily used to measure?
Changes in the cost of living over time
What characterizes international trade?
Cross-border movement of goods and services
What is the natural rate of unemployment typically between?
3-5%
GDP per capita is calculated by:
Dividing real GDP by population
Who are involuntary part-time workers?
People who settle for part-time employment because they are unable to find full-time work
What is a key function of the International Monetary Fund (IMF)?
Monitoring global economic trends
What is an example of an intermediate good NOT counted in GDP?
Rubber for tires
Which economic measurement includes overseas investments by domestic companies?
GNP
What characterizes globalization?
Cross-border movement of goods and services. Interdependence/interconnectivity of the world's economy.
What is underemployment?
When human capital exceeds job requirements
What is a primary criticism of using GDP as an economic indicator?
It doesn't account for standard of living or income distribution
Why are intermediate goods not counted in GDP calculations?
To avoid double counting
What is an example of cyclical unemployment?
Unemployment linked to economic recessions