Economics 1A – Study Guide for Exam 2
covering Chapters 6, 7, 8, 10, 15, 17
Terms: Gross Domestic Product, Nominal GDP, Real GDP,
Disposable Income, Price Index, Intermediate Good, Final Good,
What is the formula to calculate GDP using the expenditures
Which is of the four variables of GDP accounts for the greatest
portion of GDP?
What is meant by double or multiple counting?
What goods and services are included in calculating GDP and what
What are some of the shortcoming of the GDP calculation?
What is meant by disposable income?
What is the difference between nominal and real GDP?
Terms: Economic Growth, Real GDP per capita, Productivity,
Business Cycle, Frictional unemployment, Structural
Unemployment, Cyclical Unemployment, Natural Rate of
Unemployment, Full Employment, Inflation, Consumer Price
Index, Demand-Pull Inflation, Supply-Push Inflation, Nominal
Income, Real Income, Deflation, Hyperflation, Cost of Living