GDP and Unemployment test - Assignment Essays

question

GDP

answer

Gross Domestic Product

question

GDP

answer

_________ measures The total dollar value of all final goods and services produced within the country's borders in a given year

question

GDP

answer

Tool used to gauge a country's wealth

question

macroeconomics

answer

what kind of economics is GDP, micro or macro?

question

NEW

answer

GDP includes All ________ goods made in the country in one year

question

Foreign production
Transfer payments such as social security
Unpaid work
Purely financial transactions
Sale of used goods
Production in the underground economy

answer

What things do not count in GDP

question

changes in production over time

answer

What does GDP monitor?

question

Nominal GDP

answer

Measures the value of all goods and services produced at the current dollar price it actually sold for in the year in which it was produced

question

Intermediate Product

answer

A product that becomes part of a final good or service, or is used up in the production process

question

intermediate product

answer

____________ Not counted directly as part of the GDP to avoid counting double

question

Expenditure approach

answer

Add up the spending on everything included in the GDP

question

GDP = C + I + G + (X-M)

answer

Expenditure approach formula?

question

Consumption

answer

includes almost every good or service that your family buys during the year

question

Investments

answer

is business spending on physical capital, new homes, and inventories

question

Government purchases

answer

goods and services bought by any level of the government

question

Exports

answer

goods, services, and intermediate products bought by people in other countries

question

Imports

answer

goods, services, and intermediate products produced in other countries

question

expenditure approach

answer

What type of GDP calculation does the US use?

question

Income approach

answer

Add up all the income earned during the year by people involved in the production of goods and services

question

GDP = wages + rent + interest + profit

answer

Income approach formula?

question

No just inflation occurred

answer

If the price of something increases from one year to another does the GDP go up?

question

Real GDP

answer

measures total production in dollars (aka nominal gdp) after removing the distorting effect of price changes aka inflation, immunes to the effects of rising price; it only rises when production actually rises, which is the goal for a true gauge of productivity

question

Economic Growth

answer

The long term movement in the time that you can see in the graph
Sustained increase in real GDP over time

question

standard of living

answer

Economic growth leads to an increase in what?

question

real GPD

answer

________ tells us how fast the entire economy is growing. But it cannot, by itself, tell us whether living standards are improving

question

productivity

answer

The key source of economic growth is?

question

productivity

answer

The amount of output the average worker can produce in an hour. It increases economic growth because it improves the efficiency of the economy

question

Business Cycles

answer

Alternating periods of rising and falling real GDP
Typically last 15 years

question

Expansion

answer

Phase where real GDP rises
up slope part of graph

question

Contraction

answer

Phase where real GDP falls
down slope part of graph

question

Recession

answer

A contraction severe enough to last several months or longer and have widespread effects on production, real income, employment, and sales across the economy

question

Depression

answer

Decades long of contractions

question

trough

answer

Low part of graph?

question

peak

answer

High part of graph?

question

15 years

answer

How long is a business cycle?

question

cyclical

answer

what kind of unemployment relates to the business cycle?

question

Employment

answer

If a person works for pay, he or she is employed. Even if it is part time

question

Total employment

answer

total number of employed people, whether they work full time or part time

question

Unemployment

answer

Label is reserved for people who are 16 and older who are actively seeking employment but are not currently employed

question

Total unemployment

answer

total number of workers seeking jobs but who aren't actually working

question

Labor Force

answer

Combination of the employed and unemployed people (excluding the military and those imprisoned)

question

Unemployment rate

answer

percentage of the unemployed

question

Underemployed

answer

workers who would like to work more hours or workers who would prefer a job that better matches their skill set

question

Discouraged workers

answer

worker who would like to an can work but have given up the job search

question

Frictional unemployment

answer

short term unemployment while workers search for a job better suited for their needs/skill set

question

Frictional unemployment

answer

people who left previous job for a better match/pay, recent entrants to the labor force (college grads), and reentrants

question

Frictional unemployment

answer

Considered a "good" type of unemployment because it happens when people are looking for jobs that better suit them

question

Seasonal unemployment

answer

Occurs when workers lose their jobs occurring to seasonal changes

question

Seasonal unemployment

answer

lifeguards, construction workers, landscapers, extra UPS staff during Christmas holidays

question

Structural Unemployment

answer

Arises fro a mismatch between job seekers and the types of jobs available, Typically occur when there a periods of great technological changed or when consumers spending changes

question

Structural Unemployment

answer

block buster closes because of Netflix

question

Cyclical unemployment

answer

Joblessness cause by economic contraction

question

answer

Unemployment rate will never be

question

5-6%

answer

The ideal percentage of the unemployed rate is around

question

Purchasing power

answer

is the value of a currency expressed in terms of the amount of goods or services you would be able purchase

question

DECREASES

answer

purchasing power is important because inflation _______________ the amount of goods and services you would be able to purchase

question

Inflation

answer

Is a rise in the price level of goods. Think about how prices of coke in coke machines has gradually increased over time

question

Inflation rate

answer

annual percentage increase in the price level

question

Deflation

answer

decline in the price level

question

Consumer price index

answer

CPI

question

Consumer price index

answer

measures the overall price level changes faced by a typical consumer

question

CPI step 1

answer

government first determines a "market basket" (a bundle of goods an average consumer might by i.e. the average American family may buy 5 boxes of cereal a month)

question

CPI step 2

answer

determine the CPI, the government compares the cost of the market basket in the current month with its cost at a time in the past that has been selected as a benchmark, called the base period. More specifically, the CPI is calculated using the following formula

question

inflation

answer

CPI gauges _______

question

Hyperinflation

answer

rapid inflation think Germany after WWI...bread was 200,000,000 German Marks

question

Shoe leather cost

answer

was coined to reflect the cost of the time and effort involved in running to the bank—and wearing out the soles of shoes—to avoid holding cash

1 of 66

question

GDP

answer

Gross Domestic Product

question

GDP

answer

_________ measures The total dollar value of all final goods and services produced within the country's borders in a given year

question

GDP

answer

Tool used to gauge a country's wealth

question

macroeconomics

answer

what kind of economics is GDP, micro or macro?

question

NEW

answer

GDP includes All ________ goods made in the country in one year

question

Foreign production
Transfer payments such as social security
Unpaid work
Purely financial transactions
Sale of used goods
Production in the underground economy

answer

What things do not count in GDP

question

changes in production over time

answer

What does GDP monitor?

question

Nominal GDP

answer

Measures the value of all goods and services produced at the current dollar price it actually sold for in the year in which it was produced

question

Intermediate Product

answer

A product that becomes part of a final good or service, or is used up in the production process

question

intermediate product

answer

____________ Not counted directly as part of the GDP to avoid counting double

question

Expenditure approach

answer

Add up the spending on everything included in the GDP

question

GDP = C + I + G + (X-M)

answer

Expenditure approach formula?

question

Consumption

answer

includes almost every good or service that your family buys during the year

question

Investments

answer

is business spending on physical capital, new homes, and inventories

question

Government purchases

answer

goods and services bought by any level of the government

question

Exports

answer

goods, services, and intermediate products bought by people in other countries

question

Imports

answer

goods, services, and intermediate products produced in other countries

question

expenditure approach

answer

What type of GDP calculation does the US use?

question

Income approach

answer

Add up all the income earned during the year by people involved in the production of goods and services

question

GDP = wages + rent + interest + profit

answer

Income approach formula?

question

No just inflation occurred

answer

If the price of something increases from one year to another does the GDP go up?

question

Real GDP

answer

question

Economic Growth

answer

The long term movement in the time that you can see in the graph
Sustained increase in real GDP over time

question

standard of living

answer

Economic growth leads to an increase in what?

question

real GPD

answer

________ tells us how fast the entire economy is growing. But it cannot, by itself, tell us whether living standards are improving

question

productivity

answer

The key source of economic growth is?

question

productivity

answer

The amount of output the average worker can produce in an hour. It increases economic growth because it improves the efficiency of the economy

question

Business Cycles

answer

Alternating periods of rising and falling real GDP
Typically last 15 years

question

Expansion

answer

Phase where real GDP rises
up slope part of graph

question

Contraction

answer

Phase where real GDP falls
down slope part of graph

question

Recession

answer

A contraction severe enough to last several months or longer and have widespread effects on production, real income, employment, and sales across the economy

question

Depression

answer

Decades long of contractions

question

trough

answer

Low part of graph?

question

peak

answer

High part of graph?

question

15 years

answer

How long is a business cycle?

question

cyclical

answer

what kind of unemployment relates to the business cycle?

question

Employment

answer

If a person works for pay, he or she is employed. Even if it is part time

question

Total employment

answer

total number of employed people, whether they work full time or part time

question

Unemployment

answer

Label is reserved for people who are 16 and older who are actively seeking employment but are not currently employed

question

Total unemployment

answer

total number of workers seeking jobs but who aren't actually working

question

Labor Force

answer

Combination of the employed and unemployed people (excluding the military and those imprisoned)

question

Unemployment rate

answer

percentage of the unemployed

question

Underemployed

answer

workers who would like to work more hours or workers who would prefer a job that better matches their skill set

question

Discouraged workers

answer

worker who would like to an can work but have given up the job search

question

Frictional unemployment

answer

short term unemployment while workers search for a job better suited for their needs/skill set

question

Frictional unemployment

answer

people who left previous job for a better match/pay, recent entrants to the labor force (college grads), and reentrants

question

Frictional unemployment

answer

Considered a "good" type of unemployment because it happens when people are looking for jobs that better suit them

question

Seasonal unemployment

answer

Occurs when workers lose their jobs occurring to seasonal changes

question

Seasonal unemployment

answer

lifeguards, construction workers, landscapers, extra UPS staff during Christmas holidays

question

Structural Unemployment

answer

Arises fro a mismatch between job seekers and the types of jobs available, Typically occur when there a periods of great technological changed or when consumers spending changes

question

Structural Unemployment

answer

block buster closes because of Netflix

question

Cyclical unemployment

answer

Joblessness cause by economic contraction

question

answer

Unemployment rate will never be

question

5-6%

answer

The ideal percentage of the unemployed rate is around

question

Purchasing power

answer

is the value of a currency expressed in terms of the amount of goods or services you would be able purchase

question

DECREASES

answer

purchasing power is important because inflation _______________ the amount of goods and services you would be able to purchase

question

Inflation

answer

Is a rise in the price level of goods. Think about how prices of coke in coke machines has gradually increased over time

question

Inflation rate

answer

annual percentage increase in the price level

question

Deflation

answer

decline in the price level

question

Consumer price index

answer

CPI

question

Consumer price index

answer

measures the overall price level changes faced by a typical consumer

question

CPI step 1

answer

government first determines a "market basket" (a bundle of goods an average consumer might by i.e. the average American family may buy 5 boxes of cereal a month)

question

CPI step 2

answer

question

inflation

answer

CPI gauges _______

question

Hyperinflation

answer

rapid inflation think Germany after WWI...bread was 200,000,000 German Marks

question

Shoe leather cost

answer

was coined to reflect the cost of the time and effort involved in running to the bank—and wearing out the soles of shoes—to avoid holding cash

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order