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Flashcards in Economic Performance Test Deck (28):
1

Define Business Cycle.

series of growing and shrinking periods of economic activity

2

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

3

Define Durable Good.

idk

4

Define GDP

(Gross Domestic Product) the market value of all final goods and services produced in a nation in a given time period

5

Define Inflation

A sustained rise in the level of prices and a sustained fall in the purchasing power of money

6

Define Net Exports

goods/services produced in the nation but sold in foreign nations, minus values

7

Define Non-Durable good

idk

8

Define Productivity

amount of output produced from a set amount of inputs.

9

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

10

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

11

Define Underemployment

idk

12

Define Unemployment rate

idk

13

How is economic growth measured?

GDP

14

What does GDP measure?

idk

15

What are the 4 components of GDP?

Consumption, Investments, Government spending and Net Exports

16

What items are not included in GDP?

personal investments

17

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

18

What is the usual measure of a nation's standard of living?

idk

19

How does productivity increase?

when the same amount of inputs produce more output

20

What are the effects of inflation?

idk

21

How is the labor force for each nation calculated?

idk

22

How is the unemployment rate calculated?

idk

23

What are the 4 types of unemployment? Explain each type

idk

24

What are the 4 types of the business cycle? Explain each part.

idk

25

What is the difference between a depression and a recession?

idk

26

What is the lowest point of the business cycle?

trough

27

What is the highest point of the business cycle?

peak

28

How do you calculate GDP?

C+I+G+X=GDP