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WorksheetsEconomic Goals 10.17.24 WarmUp
Total questions: 10
Worksheet time: 10mins
The dollar value of all final goods and services produced within a country's borders in one year. Most important measure of economic growth
Gross Domestic Product
GDP Per Capita
Real GDP
Nominal GDP
GDP divided by the population. It identifies on average how many products each person makes. Best measure of standard of living.
GDP Per Capita
Income Approach
Labor Force Participation Rate
Problems with the CPI
What are the criticisms of the unemployment rate?
Discouraged workers: some people are no longer looking for a job because they have given up.
Underemployed workers: Someone who wants more hours but can't get them is still considered employed
Percent of population in the labor force. If people leave the labor force, the unemployment rate falls.
Index numbers assigned to each year that show how prices have changed relative to a specific base year (base year given 100)
Unemployment caused by a recession. As demand for goods/services falls, demand for labor falls and workers are fired
How do you calculate the unemployment rate?
Percent of people unemployed(# unemployed)/(# in labor force) x 100
Frictional + structural unemployment
% change in prices = (year 2 - year 1)/(year 1) x 100
Who is in the labor force?
-Above 16 years; -Able/willing to work
All of these are correct.
-Not institutionalized (jail/hospital)
-Not in military, in school full time, or retired
Why is zero percent unemployment not our goal?
Because people will always be between jobs or replaced by technology
The amount of employment that exists when the economy is healthy and growing
If people leave the labor force, the unemployment rate falls
some people are no longer looking for a job because they have given up
The rising in the general level of prices and it reduces the "purchasing power" of money
Inflation
Price Indices
Real Wage
Inflation Rate
1. Consumer Spending
2. Investment (business spending on tools/equipment
3. Government spending (NOT transfer payments)
4. Net exports -- exports (x) - Imports (M)
Four components of GDP
factors of productivity
Major Economic Goals for Every Country
The Business Cycle
1. Promote economic growth
2. Limit unemployment
3. Keep prices stable (limit inflation)
Major Economic Goals for Every Country
factors of productivity
components of GDP
Income approach adds up
What is NOT included in GDP?
Intermediate goods
stocks, bonds, real estate
illegal activities
All of these are correct.
