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Chpt. 2
Measuring Economic Activity
Question | Answer |
---|---|
What is GDP? | The total dollar value of all final goods and services produced in a country during one year. |
What is GDP per capita? | It's calculated by dividing GDP by the total population. |
What is unemployment rate? | The portion of people in the labor force who are not working. |
What is Productivity? | The production output in relation to a unit of input, such as a worker. |
What is personal income? | Refers to salaries and wages as well as investment income and government payments to individuals. |
What are retail sales? | The sales of duravle and nondurable goods bought by consumers. |
What is the business cycle? | The movement of the economy from one condition to another and back again. |
What are the four phases of the business cycle? | Prosperity, recession, depression, and recovery. |
What is inflation? | It's an increase in the general level of prices. |
What is deflation? | It's a decrease in the general level of prices. |