Economic Measures & Challenges Flashcard

Front

What is the total value of all goods & services produced within the economy in a year and is the main way that a country's economy is measured?

Back

Gross Domestic Product (GDP)

Front

How long of a period does GDP measure?

Back

One year

Front

What is it called when the economy is shrinking and GDP decreasing?

Back

Contraction

Front

What is it called when the economy is growing and GDP is increasing?

Back

Expansion

Front

In which quarter did the "Peak" take place? Options: Q1 1990, Q3 1990, Q4 1990, Q1 1991

Back

Q3 1990

Front

Which part of the business cycle was Q4 1990?

Back

Contraction

Front

Which part of the business cycle was Q2 1991?

Back

Expansion

Front

How long must a contraction last before it is considered to be a "recession"?

Back

6 consecutive months

Front

What is the formula for Gross Domestic Product (GDP)?

Back

C + I + G + (X - M)

Front

In the formula for GDP, what does "G" represent?

Back

Government Spending / Purchases