Econ exam 2 studying

Econ exam 2 studying - Exam # 2 Chapter 6: GDP- the...

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Exam # 2 Chapter 6: GDP - the monetary measure of the total market value of all final goods and services produced within country in one year. Nominal GDP - unadjusted number, natural Real GDP - divide by price index, inflation Disposable Income - income minus taxes Price Index - making comparisons of prices now and earlier Intermediate Good - used in production, glass on tv, tires. Final Good - finished good Double Counting - count intermediate and final goods - GDP formula = C+I+G+Xn C = 70% - What’s included in GDP? Only final goods and services, no used goods. - what is not counted? Illegal products, babysitter, used goods. - shortcomings? Non-economic factors, pollution, quality, environment, leisure time. Chapter 7: Economic Growth – increase in real GDP or per capita (per person). Productivity – measured by output divided by input. Business Cycle – 4 stages; peak, recession, trough, growth/expansion/recovery. Unemployment – 3 classifications: Frictionally- between jobs, employable. Structural – replaced by machine. Cyclical – recession, laid off because not enough work (worst). - How is unemployment rate calculated? Actively seeking work that cant find it, ppl under 16 don’t count. Ppl looking divided by labor force.
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This test prep was uploaded on 04/03/2008 for the course ECON 1A taught by Professor Higgins during the Spring '08 term at Cuesta College.

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Econ exam 2 studying - Exam # 2 Chapter 6: GDP- the...

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