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Unformatted text preview: s (G), and export spending (EX), and
then subtract import spending (IM).
Greater production of goods and services
(higher GDP) is a factor that contributes to
people being better off. Section 3
Real GDP is equal to price in the base year
times quantity in the current year.
Economists use a base year to analyze changes
in production and prices. Section 4
To calculate the change in prices from one year
to the next, economists compute a price index.
The consumer price index (CPI) is calculated
by sampling households to determine what
consumers paid for a group of goods called the
The forces of an economy’s aggregate demand
and supply determine the equilibrium price
level and equilibrium quantity of goods and
The unemployment rate equals the unemployed persons divided by the civilian labor
force. 308 Chapter 11 Measuring Economic Performance To reinforce your knowledge of the key terms in
this chapter, fill in the following blanks on a separate piece of paper with the appropriate word or
1. The total market value of all fin...
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This document was uploaded on 01/16/2014.
- Winter '14