applying economic concepts 5 smith earned 40000 in

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ty of goods and services (in the econ- omy) to fall? (Hint: Look at Exhibit 11-10.) Applying Economic Concepts 5. Smith earned $40,000 in 2003 and $50,000 in 2004. The CPI was 184.0 in 2003 and 188.9 in 2004. Using the data presented, how can Smith figure out whether his earnings went up by more than, less than, or equal to the change in prices? Section 4 Measuring Price Changes and the Unemployment Rate 307 11 (286-309) EMC Chap 11 11/17/05 6:06 PM Page 308 Economics Vocabulary Chapter Summary Be sure you know and remember the following key points from the chapter sections. Section 1 Gross domestic product (GDP) is the total market value of all final goods and services produced annually in a country. Some exchanges, such as illegal transactions and those with no record, are omitted from the GDP measurement. Section 2 Economists break the economy into four sectors: household, business, government, and foreign. To compute U.S. GDP we need to sum consumption (C), investment (I), government purchase...
View Full Document

Ask a homework question - tutors are online