Greater production of goods and services higher gdp

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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 market basket. The forces of an economy’s aggregate demand and supply determine the equilibrium price level and equilibrium quantity of goods and services. 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 phrase. 1. The total market value of all fin...
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This document was uploaded on 01/16/2014.

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