Ch.13 Measuring The Economy

1. 13.2 What are different forms of GDP?

1.1. Real GDP, value of economic output adjusted for price changes

1.2. Nominal GDP, figure that has not been adjusted for inflation

1.3. Per capita GDP,gross domestic product divided by midyear population

2. 13.3 What are the different reasons for unemployment?

2.1. Frictional unemployment is when someone has left their current job in hopes of finding another job. People who are looking for their first job or change jobs.

2.2. Cyclic unemployment occurs during the growth or downfall of the country's economy.

2.3. Seasonal unemployment occurs during the country's different seasons when changing weather brings about new jobs or takes away jobs.

3. 13.4 How does rising inflation affect the country's economic strength?

3.1. It decreases the value of the countries currency.

3.2. In extreme cases rising inflation can give way to hyperinflation causing the currency to lose strength at hyper speed

3.3. Causes that currency to lose value and the citizens will lose worth. and will have to adjust to real wages which is a wage adjusted to inflation.

4. 13.5 How does the business cycle affect unemployment?

4.1. Expansion, a cycle of the business which causes a increase in jobs and gdp and decreases unemployment.

4.2. Contraction, another cycle that causes a decrease in gdp for over 2 quarters resulting in a increase in unemployment.

4.3. Recovery, a ring in the cycle that occurs after the contraction that see a rise in GDP and a increase in employement

4.4. http://smallbusiness.chron.com/explanation-business-cycle-its-stages-65772.html

4.5. The link explains the EQ's profiecently and gets right to the point in explaining the cycles of business and presents facts.