Measurements in Macro Economics (The Big Picture)

What does inflation measure?

• The amount of money in circulation

• How much prices rise or fall over time

• The number of goods produced

Is there a perfect way to measure inflation?

• Yes, using the GDP

• Yes, using the stock market

• No, there is no perfect way

What does GDP stand for?

• Gross Domestic Product

• General Domestic Product

• Global Domestic Product

What is one limitation of GDP?

• It doesn't account for environmental damage

• It doesn't measure population growth

• It doesn't include government spending

Who is considered part of the workforce?

• Anyone employed or has looked for work in the past 4 weeks

• Anyone who is studying

• Anyone who is looking for work

What is the u-rate?

• The Unemployment Rate

• The Employment Rate

• The Underemployed Rate

What happens to workers who stop actively searching for a job after four weeks?

• They are still counted as part of the labor force.

• They are considered employed.

• They are no longer considered part of the labor force.

There are a three key things that macroeconomists try to measure: ​ ​ ​ ​ (a)   ,​ (b)   and​ (c)  

• inflation
• product
• unemployment
• employment
• wages

What does CPI stand for:

What is the Consumer Price Index?