Unit 3- Intro To Macroeconomics

What is GDP?

• The total domestic and foreign output claimed by residents of a country

• Currency value of all final goods and services produced within a country in a given period

• The market value of goods and services produced by labor and property supplied by U.S. resident

• A measure of economic and moral progress

What does GDP measure?

• The health, education, equality of opportunity, and the state of the environment.

• The collective happiness in a nation.

• A nation's economic output.

• The monetary value of final goods and services produced in a country in a given period of time.

What is Real GDP?

• Inflation-adjusted measure, reflects the value of all goods & services produced in a given year

• Market value of final production of goods & services in a given period using that years prices. (without adjustment for inflation)

Answer explanation

Nominal GDP- Market value of final production of goods & services in a given period using that years prices. (without adjustment for inflation)

Who is considered unemployed?

• Anyone who is at least 16 years of age and is actively seeking employment.

• Everyone without a job.

• People who have not looked for work in the past four weeks.

• People not in the labor force.

Who is NOT included in the Labor Force?

• Those in the civilian noninstitutional population.

• Those who are unemployed.

• Those 16 years of age and older.

• Those who are employed or are are actively looking for work.

Frictional Unemployment

• when people move from job to job and claim benefit in the meantime

• the decline of industries and the inability of former employees to move into jobs being created

• caused because of the seasonal nature of employment – tourism, skiing, beach lifeguards

• general lack of demand in the economy. results from cycles of economic upturn and downturn.

Structural Unemployment

• the decline of industries and the inability of former employees to move into jobs being created

• caused because of the seasonal nature of employment – tourism, skiing, beach lifeguards

• when people move from job to job and claim benefit in the meantime

• general lack of demand in the economy. results from cycles of economic upturn and downturn.

Seasonal Unemployment

• general lack of demand in the economy. results from cycles of economic upturn and downturn.

• the decline of industries and the inability of former employees to move into jobs being created

• when people move from job to job and claim benefit in the meantime

• caused because of the seasonal nature of employment – tourism, skiing, beach lifeguards

Cyclical Unemployment

• caused because of the seasonal nature of employment – tourism, skiing, beach lifeguards

• general lack of demand in the economy. results from cycles of economic upturn and downturn.

• when people move from job to job and claim benefit in the meantime

• the decline of industries and the inability of former employees to move into jobs being create

What is Inflation?

• General upward movement in the average level of prices of the goods and services in an economy

• The general decrease in the average level of prices of the goods and services in an economy.