Economic Indicators

Gross domestic product is equal to the market value of all final goods and services:

• exchanged during a period.
• produced domestically during a period.
• produced by the citizens of a nation during a period.
• produced domestically during a period minus the depreciation of productive assets.

Inflation is defined as an increase in:

• real wages of workers.
• real GDP.
• the average price level.
• all consumer products.

What usually happens to inflation during a recession?

• it stays the same
• it increases
• it decreases
• it is zero

Why is consumer spending an important economic indicator?

• can be an indicator for an individual business’s economic growth

• consumer spending is not an economic indicator

• Consumer spending tells how much a person makes

• Consumer spending can be an indicator for what company a persons works for.

Gross Domestic Product includes the market value of all FINAL goods and services produced within a country during a given period of time.

• True

• False

What is happening to the economy in a period of economic contraction?

• GDP is rising and unemployment is falling.
• GDP is rising and unemployment is rising.
• GDP is falling and unemployment is rising.
• GDP is falling and unemployment is falling.

Who would benefit from inflation?

• Michael, a banker who has extended many fixed rate loans.
• Trenton, who has a fixed, contracted salary with no COLA.
• Emily, who took out a loan at a low fixed-interest rate.
• Kennedy, a businessman whose costs are rising.

What is unemployment?

• The percentage of people in the labor force (over 16 years old) who are willing to work and actively seeking employment

• Time spent between jobs when a worker is searching for or transitioning from one job to another.

• Worker skills , pay, and workers live far away

• Caused by annual change in weather or other conditions that reduce the demand for jobs

When interest rates are low.....

• inflation decreases. This is because fewer people can afford to borrow money, which means demand for goods and services falls

• inflation increases. This is because more people can afford to borrow money which means the demand for goods and services rises

Which of the answers below, is not an impact of national debt on individuals, businesses or economies

• –The economy will be less competitive.

• –Taxes may increase, resulting in less disposable income for individuals and profit for businesses.

• –Emigration is reduced, meaning businesses have access to more skilled workers.

• –There is an opportunity cost as the money used to service debts could have been used to fund essential services, such as healthcare or education.