Chapter 13 Measuring the economy

1. Gross domestic product: market value of all final goods and services produced within a country during a given period of time. This GDP is considered a sign of a good economic health.

2. 13.3 What does the unemployment rate tell us about an economy's health?

2.1. The unemployment rate tells that the economy's health is going down because there is no money being made by those unemployment.

2.2. The few goods and services are being made with all the unemployment.

2.3. There are a lot of reasons to fire people which causes business to lose business.

2.4. Unemployment rate: percentage of the labor force that is seeking work.

2.5. Structural unemployment: type of unemployment that results when the demand for certain skills declines, often because of changes in technology.

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2.7. http://www.socialjusticesolutions.org/2014/01/23/unemployment-rate-really-tell-us/

2.8. This article talks about how unemployment is bad for the economy's health. How the economy needs to make unemployment rate lower to have a better economy. That the economy needs to make it lower or business will as well have a hard time.

3. 13.2 How do economist measure the size of an economy?

3.1. Nominal and real GDP is one way economist use to measure the economy. They tract the current dollars spent each year.

3.2. They also study the making of individuals.

3.3. The per capital GDP when it is higher people live longer.

3.4. Per capital GDP: nations real GDP divided by its population; a measure of average economic output per person. This measures the society's standard of living.

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3.6. https://countrydata.bvdep.com/version-2012413/EIU/Help/measuringeconomicactivity.htm

3.7. This article talks about how economist use GDP to measure the economy. It also talks about how it also can be measure in GNP and NNP. Gross national product that is the nationals income and Net national product. that is the gross in GNP and GDP. Also how GDP does not include all of the money. There is no transfer payments, money you get from your birthday, and if you pay someone to cute you grass in not recorded.

4. 13.5 How does the business cycle relate to economic health?

4.1. When the business cycle is on expansion, the economic health is growing/doing good. When it gets to trough slows down and does not do that well.

4.2. Expansion is when the economic health is doing well and the GDP is increasing and inflation rate is doing good to. Each of the business cycles has a positive or negative effect on the economic health.

4.3. A recession in business are not that bad and have mild effects. How ever if it a long recession it becomes know as that depression that americans suffer through. That causes the economic go into a great depression. so the business cycle can effect the econmy either good or really bad

4.4. recession: a period of declining national economic activity, usually measured as a decrease in GDP for at least two consecutive quarters.

4.5. leading economic indicators: measures that consistently rise or fall several months before an expansion or a contraction begins.

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4.7. http://www.ehow.com/info_7741896_impact-business-cycles-economy.html

4.8. Expansion, rough, peak, contraction, and recovery. This article talks about all of those in the business cycle. In the peak the economic is not doing good, it can lead to people losing their jobs and retails sales declining. In the recovery, the economy is doing well because the employment is rising. Each business cycle has a different affect on the economy.

5. 13.4 What does the inflation rate reveal about an economy's health?

5.1. If there the inflation rate is high or low it will show that the economy is doing good or bad.

5.2. The inflation can change the normal cost of living if needed be. That way the economy will all be on the same level.

5.3. If there is a creeping inflation then the economic price of goods and services will be a stead rise.

5.4. consumer price index: measure of price changes in consumer goods and services over time.

5.5. demand-pull inflation: a rise in the price of goods and services caused by an increase in overall demand.

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5.7. http://inflationdata.com/articles/2009/11/25/which-is-better-high-or-low-inflation/

5.8. This article tells what exactly inflation does to the economy. That whether inflation is high or low that there wouldn't be a guarantee that it wouldn't go lower or higher. It also talks about if inflation is high businesses are forced to raise their prices and banks have to raise their interest rates. This would increase unemployment that is harmful to the economic health. This article also talks about how inflation that is low that encourages people to reduce high debt loads.