Macro Part 1

What does #4 represent?

• expansion

• contraction

• transformation

• reduction

Unemployment

• The situation where individuals who are capable of working and are actively seeking work are unable to find employment.

• A state where individuals are employed but dissatisfied with their jobs.

• The condition of having a job that does not match one's skills or qualifications.

• A temporary break from work due to personal reasons.

Stagflation

• A situation where inflation is low, economic growth is high, and unemployment is low.

• A situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high.

• A situation characterized by rapid economic growth and low unemployment rates.

• A situation where prices are stable, but economic growth is stagnant.

Consumer Price Index (CPI)

• A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

• A statistical measure that tracks the changes in the price level of a market basket of consumer goods and services over time.

• An index that measures the average change in prices received by domestic producers for their output.

• A tool used to measure the economic performance of a country based on its gross domestic product.

Economic Growth

• An increase in the production of goods and services in an economy over a period of time.

• A decrease in unemployment rates in an economy.

• A rise in the prices of goods and services over time.

• The total value of all goods and services produced in a year.

Gross Domestic Product (GDP)

• A measure of a country's total land area.

• A measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.

• A measure of the population growth rate in a country.

• A measure of the total number of businesses operating in a country.

What is the economic goal for the inflation to be?

• 1-2%

• 2-3%

• 3-4%

• 4-5%

What is the formula for GDP?

• C+I+G+NX-I

• C+I+G+X-M

• C+G+I+NX

• C+I+G+X+M

Expansionary Period

• A phase in the business cycle where the economy is growing and moving towards a peak.

• A time when the economy is contracting and moving towards a trough.

• A period of economic stability with no significant growth or decline.

• A phase characterized by high unemployment and low consumer spending.

Expansion

• A phase of the business cycle where the economy moves from a trough to a peak, characterized by increased economic activity and growth.

• A period of economic decline marked by falling GDP and rising unemployment.

• A stage in the business cycle where economic activity is stagnant and growth is minimal.

• A time when the economy is experiencing rapid inflation and high interest rates.