Ch. 12.1
1. Intermediate goods are goods used in the production of final goods, which are the goods that are ready for consumers.
2. GDP is the dollar value of all final goods and services produced within a country's borders in a given year and gross national product is the annual income earned by U.S. owned firms and U.S. citizens.
3. Nominal GDP is expressed in current prices and real GDP is expressed in constant/unchanging prices.
4. The economic activities that are not involved in GDP are activities that people do/make themselves, transactions that are not recorded or reported to the govt.
5. If an aggregate demand (the amount of goods and services in the economy that will be purchased at all possible price levels) rises, the real GDP goes up in a curve formation.
The price level will go down. Ch. 12.2
1. The phase of a business cycle that may lead an economy into a recession is the peak. At the peak an economy is experiencing the most expansion and economic growth. When this expansion cannot sustain itself the economy will fall into a recession.
2. Interest rates can push a cycle towards contraction by going up, resulting in less purchasing of the products that's prices went up when the interest rates increased.
3. The stock market is said to be a leading indicator of economic change because the larger companies and all the companies when viewed as a whole increase/decline in the stock market as the economy increases or declines.
4. The great depression affected economists views of the macroeconomy by showing them that, in a time of extreme economic contraction, the market doesn't just "fix" itself. Ch 12.3
1. (a)Economists measure the real GDP per capita because it is considered to be the best way to show a nation's individual's standard of living.
(b)Real GDP per capita provides a better way to compare the economies of two different nations than real GDP alone because, with it, you can establish a basis for what the individual's standards of living are.
2. Capital deepening is the process of increasing the amount of capital per worker. This contributes to economic growth because, as the capital per worker goes up, more money is able to be spent and eventually the GDP goes up.
3. Saving, in an economy is income not used for consumption. This is how people/companies purchase/expand themselves/their lifestyles.
4. Patents encourage technological progress because it allows for people to be confident with their advances knowing that they will be reimbursed for their work so they release it to the public. Pg. 326 1-6, 8-11
1. Intermediate goods
2. Business cycle
3. Gross domestic product
4. Capital deepening
5. Price Level
6. Recession
7. Three limitations of using the GDP as a measure of the nation's economy are non-market activities, the underground economy, and the quality of life
8. Four factors that keep the business cycle going are business investments, interest rates, credit and consumer expectations.
9. Economists measure economic growth by using the real GDP per capita, which divides the real GDP by the total population, on order to figure out the nation's standard of living.
10. Nominal GDP uses the actual prices of the products to determine itself, and the Real GDP uses a constant unchanging price.
Mar 1 - 13.1 - Read pages 331-336 ...Answer the following questions: 1. Describe frictional, seasonal, structural, and cyclical unemployment. 2. Describe how full employment is measured. 3. Explain why full employment does not mean that every worker is employed.
1. Frictional unemployment is unemployment that occurs when people take time to find a job. Seasonal unemployment is unemployment that occurs as a result of harvest schedules for vacations, or when industries slow or shut down. Structural unemployment is unemployment that occurs when workers skills do not match those needed for available jobs. Cyclical unemployment is unemployment that rises during economic downturns and falls when the economy improves.
2. Full is the level of employment reached when no cyclical unemployment exists. When Cyclical unemployment is at 0 then the full employment exists, however, due to the fact that having an unemployment level of 0 is unreachable, you cannot ever, in the real world, measure full employment.
3. full employment doesn't mean that every worker is employed due to seasonal jobs. there is never, at one point, every single person has a job at the same time.
1. Intermediate goods are goods used in the production of final goods, which are the goods that are ready for consumers.
2. GDP is the dollar value of all final goods and services produced within a country's borders in a given year and gross national product is the annual income earned by U.S. owned firms and U.S. citizens.
3. Nominal GDP is expressed in current prices and real GDP is expressed in constant/unchanging prices.
4. The economic activities that are not involved in GDP are activities that people do/make themselves, transactions that are not recorded or reported to the govt.
5. If an aggregate demand (the amount of goods and services in the economy that will be purchased at all possible price levels) rises, the real GDP goes up in a curve formation.
The price level will go down.
Ch. 12.2
1. The phase of a business cycle that may lead an economy into a recession is the peak. At the peak an economy is experiencing the most expansion and economic growth. When this expansion cannot sustain itself the economy will fall into a recession.
2. Interest rates can push a cycle towards contraction by going up, resulting in less purchasing of the products that's prices went up when the interest rates increased.
3. The stock market is said to be a leading indicator of economic change because the larger companies and all the companies when viewed as a whole increase/decline in the stock market as the economy increases or declines.
4. The great depression affected economists views of the macroeconomy by showing them that, in a time of extreme economic contraction, the market doesn't just "fix" itself.
Ch 12.3
1. (a)Economists measure the real GDP per capita because it is considered to be the best way to show a nation's individual's standard of living.
(b)Real GDP per capita provides a better way to compare the economies of two different nations than real GDP alone because, with it, you can establish a basis for what the individual's standards of living are.
2. Capital deepening is the process of increasing the amount of capital per worker. This contributes to economic growth because, as the capital per worker goes up, more money is able to be spent and eventually the GDP goes up.
3. Saving, in an economy is income not used for consumption. This is how people/companies purchase/expand themselves/their lifestyles.
4. Patents encourage technological progress because it allows for people to be confident with their advances knowing that they will be reimbursed for their work so they release it to the public.
Pg. 326 1-6, 8-11
1. Intermediate goods
2. Business cycle
3. Gross domestic product
4. Capital deepening
5. Price Level
6. Recession
7. Three limitations of using the GDP as a measure of the nation's economy are non-market activities, the underground economy, and the quality of life
8. Four factors that keep the business cycle going are business investments, interest rates, credit and consumer expectations.
9. Economists measure economic growth by using the real GDP per capita, which divides the real GDP by the total population, on order to figure out the nation's standard of living.
10. Nominal GDP uses the actual prices of the products to determine itself, and the Real GDP uses a constant unchanging price.
Mar 1 - 13.1 - Read pages 331-336 ...Answer the following questions:
1. Describe frictional, seasonal, structural, and cyclical unemployment.
2. Describe how full employment is measured.
3. Explain why full employment does not mean that every worker is employed.
1. Frictional unemployment is unemployment that occurs when people take time to find a job. Seasonal unemployment is unemployment that occurs as a result of harvest schedules for vacations, or when industries slow or shut down. Structural unemployment is unemployment that occurs when workers skills do not match those needed for available jobs. Cyclical unemployment is unemployment that rises during economic downturns and falls when the economy improves.
2. Full is the level of employment reached when no cyclical unemployment exists. When Cyclical unemployment is at 0 then the full employment exists, however, due to the fact that having an unemployment level of 0 is unreachable, you cannot ever, in the real world, measure full employment.
3. full employment doesn't mean that every worker is employed due to seasonal jobs. there is never, at one point, every single person has a job at the same time.