Economics Flashcard

Front

What does GDP measure?

Back

The total value of goods and services produced within a country

Front

What is the primary difference between nominal GDP and real GDP?

Back

Real GDP adjusts for inflation, while nominal GDP does not

Front

The Consumer Price Index (CPI) is used to measure: Economic growth, Full employment, Price stability, National debt

Back

Price stability

Front

Which of the following is NOT included in the calculation of the CPI? Housing costs, Food prices, Stock market performance, Medical expenses

Back

Stock market performance

Front

The unemployment rate is calculated by dividing the number of unemployed individuals by:

Back

The labor force

Front

Which type of unemployment occurs when people are temporarily out of work as they transition between jobs?

Back

Frictional unemployment

Front

Seasonal unemployment is caused by: Changes in demand based on time of year

Back

Changes in demand based on time of year

Front

Structural unemployment is caused by:

Back

Changes in industries or technologies that make certain skills obsolete.

Front

Which stage of the business cycle is characterized by the highest level of economic activity?

Back

Peak

Front

A recession is defined as:

Back

A period of negative GDP growth for two consecutive quarters