Economics GDP Practice Exam Questions 100% Correct

Economics GDP Practice Exam Questions 100% Correct Gross Domestic Product *Ans* -The total market value of all final goods and services produced within the borders of a country during one year -A basic measure of a country's output and income real GDP *Ans* -adjusted for inflation and price changes measures economic growth Real GDP per capita *Ans* A measure that permits comparison of material living standards over time and among people in different nations (real GDP/population) potential GDP *Ans* The real GDP that the economy would produce if its labor and other resources were fully employed. Consumer price index *Ans* -The most commonly used measure of price changes - Helps determine the rate of inflation or deflation - Imperfect measure Unemployment rate *Ans* -As measured by the Bureau of Labor Statistics, the proportion of the labor force actively seeking work but unable to find jobs (unemployed/labor force x 100) -imperfect measure Nominal GDP *Ans* GDP measured in current dollars Frictional unemployment *Ans* A type of unemployment caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs. Cyclical unemployment *Ans* Occurs because of a downturn in the economy. Structural unemployment *Ans* unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one Seasonal unemployment *Ans* unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season Unemployment *Ans* -Measures the number of people who are able to work, but do not have a job during a period of time. -When it is high, the economy will not produce as much as it could -emphasizes social differences such as age, race, gender Inflation *Ans* -A general and progressive increase in price