TEST 2 STUDY GUIDE

TEST 2 STUDY GUIDE - (7 QUESTIONS Real GDP(Gross Domestic...

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(7 QUESTIONS) Real GDP (Gross Domestic Product)- measures the value of final goods and services produced within the borders of a given country during a given period of time, typically 1 year. Nominal GDP- First calculated- which totals the dollar value of all goods and services produced within the borders of a given country using their current prices during the year that they were produced . 467 Unemployment- The state a person is in if he or she cannot get a job despite being willing to work and actively seeking work. Inflation- An increase in the overall level of prices. The Miracle of Modern Economic Growth READ THIS PARAGRAPH! Modern economic growth- (in which output per person rises) the annual increase in output per person is not large, 2%?, but when compounded over time, an annual growth of 2% adds up quickly. Financial investment- Captures what ordinary people mean when they say investment. The purchase assets like stock, bonds, and real estate in the hope of reaping a financial gain. Economic investment- Has to do with the creation and expansion of business enterprises. Only include money spent purchasing newly created capital goods such as machinery, tools, factories, and warehouses. The Business cycle- Macro-economic- Studies the behavior of the economy as a whole. It is primarily concerned with two topics: long-run economic growth and the short-run fluctuations in out-put and employment. Often referred to as the business cycle. Recession- Sometimes growth proceeds more rapidly and sometimes it proceeds more slowly. It may even turn negative for a while so that output and living standards actually decline. (10 QUESTIONS) Gross Domestic Product (GDP) - Defines the aggregate output as the dollar value of all final goods and services produced within the borders of a given country during a given period of time (typically a year) (Monetary measure of market value of all vital goods and services within a country within a year. Monetary Measure- What the GDP does. Avoiding Multiple Counting
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This note was uploaded on 10/01/2010 for the course ECO 2013 taught by Professor Haroldj.vanboven during the Fall '09 term at Edison State College.

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TEST 2 STUDY GUIDE - (7 QUESTIONS Real GDP(Gross Domestic...

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