GDP, Inflation, Unemployment

Aly spends $400 on used textbooks at the beginning of the semester in college.  Is this included in the GDP?

• YES
• NO

What is the definition for GDP?

• The market value of all final goods and services produced in a nation during a period of time, usually a year.

• The increase of general prices over time.

• When people do not have jobs and are actively looking for one.

What is the definition for inflation?

• The market value of all final goods and services produced in a nation during a period of time, usually a year.

• The increase of general prices over time.

• When people do not have jobs and are actively looking for one.

What is the definition for unemployment?

• The market value of all final goods and services produced in a nation during a period of time, usually a year.

• The increase of general prices over time.

• When people do not have jobs and are actively looking for one.

Rate of Inflation is...

• Is the rate of decreasing prices in a country

• Signifies a stable economy when low, but an unstable economy when high

• is not important when looking at the health of the economy

Business cycle has four phases:

• expansion, peak, contraction, trough

• peak, expansion, concept, decline

• contraction, peak, expansion, uprise

• trough, peak, decline, uprise

A price index determined by measuring the price of a standard group of goods meant to represent the market basket of a typical consumer.

• Customer Purchasing Index

• Consumer Price Index

• Consumer Policy Index

• Inflation

A sustained general increase in prices across an economy.

• Disinflation

• Consumer Price Index

• Deflation

• Inflation

A period of expansion or growth, followed by a period of contraction, or decline in the economy

• Business Cycle

• Circular Flow

• Equilibrium