Flashcards in Economic Performance Test Deck (28)
Define Business Cycle.
series of growing and shrinking periods of economic activity
Define Consumer Price Index
Measure of changes in the prices of goods and services commonly purchased by consumers.
-Used by economist to gauge the inflation rate or rate of change in prices over a set period of time
Define Durable Good.
(Gross Domestic Product) the market value of all final goods and services produced in a nation in a given time period
A sustained rise in the level of prices and a sustained fall in the purchasing power of money
Define Net Exports
goods/services produced in the nation but sold in foreign nations, minus values
Define Non-Durable good
amount of output produced from a set amount of inputs.
Define Real GDP
-GDP corrected for change in prices from year to year
-estimate of GDP if prices remained constant
-more accurate measure of economic performance
Define Real GDP Per Capita
-real GDP divided by total population
-reflects each person's share of real GDP
-usual measure of a nation's standard of living, not the quality of life
Define Unemployment rate
How is economic growth measured?
What does GDP measure?
What are the 4 components of GDP?
Consumption, Investments, Government spending and Net Exports
What items are not included in GDP?
What are the requirements of GDP?
-has to be a final product or service
-must be produced in a given time period (this year)
-must be produced within a nation's borders
What is the usual measure of a nation's standard of living?
How does productivity increase?
when the same amount of inputs produce more output
What are the effects of inflation?
How is the labor force for each nation calculated?
How is the unemployment rate calculated?
What are the 4 types of unemployment? Explain each type
What are the 4 types of the business cycle? Explain each part.
What is the difference between a depression and a recession?
What is the lowest point of the business cycle?
What is the highest point of the business cycle?