GDP & Production
This measures the total value of final goods and services produced within a country.
What is GDP?
This is the general rise in prices over time.
What is inflation?
This refers to people who are actively looking for work but cannot find a job.
What is unemployment?
This occurs when someone is working part-time or below their skill level.
What is underemployment?
When GDP is increasing, this generally indicates this type of economic condition.
What is economic growth?
This type of GDP adjusts for inflation and shows true economic growth.
What is real GDP?
This index tracks changes in the price of a typical basket of goods and services.
What is the Consumer Price Index (CPI)?
This type of unemployment occurs when someone is between jobs by choice.
What is frictional unemployment?
This economic condition is marked 2 falling or negative quarters GDP and rising unemployment.
What is a recession?
When unemployment is low but prices are rising quickly, this problem may occur.
What is inflation?
These goods are not counted in GDP to avoid double counting.
What are intermediate goods?
This happens when rising prices reduce how much consumers can afford to buy.
What is decreased purchasing power?
This type of unemployment is caused by changes in technology or the economy.
What is structural unemployment?
This is a severe and long-lasting economic downturn.
What is a depression?
When GDP is falling and unemployment is rising, the economy is likely experiencing this.
What is a recession?
These goods are used to produce other goods, like machines or tools.
What are capital goods?
This is extremely high and rapid inflation.
What is hyperinflation?
This type of unemployment occurs during economic downturns or recessions.
What is cyclical unemployment?
This condition includes high inflation, high unemployment, and slow economic growth.
What is stagflation?
Economists use multiple indicators instead of one because this gives a more complete picture of the economy.
What is a full/accurate view of economic health?
DOUBLE JEOPARDY!
When a product is made in the U.S. using imported parts, this part of production is counted in GDP.
What is final production within the U.S.?
When everyday items like food, gas, and clothing become more expensive, this indicator reflects those changes.
What is CPI?
This type of unemployment occurs when jobs are only available during certain times of the year.
What is seasonal unemployment?
This is a major concern because it reduces income, spending, and overall economic growth.
What is high unemployment?
These three indicators are commonly used together to evaluate the health of an economy.
What are GDP, unemployment, and inflation?