Economic Indicators, Business Cycle, Monetary and Fiscal Policy

Front

What is the definition for GDP?

Back

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

Front

What is the definition for inflation?

Back

The increase of general prices over time.

Front

What is the definition for unemployment?

Back

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

Front

What is the ideal (healthy) rate for GDP?

Back

2-4%.

Front

What is the ideal (healthy) rate for Inflation?

Back

Below 3%

Front

What is the ideal (healthy) rate for Unemployment?

Back

Below 5%

Front

How is GDP calculated? Options: C + I + G + (X - M), C - I - G - (X + M), C + I + G (X - M), I + G + C (M - X)

Back

C + I + G + (X - M)

Front

What letter in the GDP equation has the largest impact on our economic growth?

Back

C (Consumer Spending)

Front

What type of inflation is represented here? Scenario- Apple releases a new iPhone that is foldable causing the popularity of iPhones to increase. To capitalize on this opportunity, Apple decides to increase their prices.

Back

Demand-Pull Inflation

Front

What type of inflation is represented here? Scenario- The price of steel increases, so contractors increase the price of new homes to make up for the increase in resource costs.

Back

Cost-Push Inflation