Dept. of Commerce
Real GDP is the value of the goods and services produced by the nations
economy less the value of the goods and services used up in production, adjusted for
price changes. In the second quarter of 2015, real GDP increased at an annual ra
PG 525 #1-8
1. In an economy, income must equal its expenditure because everything that is sold is
bought by someone else, making it impossible to have more of one or the other.
2. The production of a luxury car contributes more to GDP than the production
Chapter 28 Notes
- The unemployment rate is the percentage of those who would like to work who do not
have jobs. The Bureau of Labor Statistics calculates this statistic monthly based on a
survey of thousands of households.
- The unemployment rate is an i
- The most obvious determinant of your demand is your tastes.
- Your expectations about the future may affect your demand for a good or service today.
- Because market demand is derived from individual demands, it depends on all those
factors that determi
sale are all exactly the same, and 2) the buyers and sellers are so numerous that no single
buyer or seller has an influence over the market price. Because buyers and sellers in
perfectly competitive markets must accept the price the market determines, th
- Because of differences in scientific judgments and differences in values, some
disagreement among economists is inevitable.
Chapter 3: Interdependence and the Gains from Trade
- Absolute advantage is the ability to produce a good using fewer inputs than
-Economists try to address their subject with a scientists objectivity. They approach the
study of the economy in much the same way as a physicist approaches the study of matter
and a biologist approaches the study of life. They devise theories, collect d
- Today, most countries that one had centrally planned economies have abandoned the
system of central planning and are trying to develop market economies.
- In a market economy, the decisions of a central planner are replaced by the decision of
AP Macroeconomics Summer Assignment
Chapter 1: Ten Principles of Economics
- The management of societys resources is important because resources are scarce. A
society cannot give every individual the highest standard of living to which he or she
Current Event #3
News Source(s) and minutes: CNN, 30 minutes.
1. Topics in the News:
Global warming is making the global economy worse, as heat-trapping carbon dioxide pollution
grows exponentially. If this continues, the world will not be able to obtain