1. How Do Economists Measure the Size of an Economy?
1.1. Measuring the size of the economy
1.1.1. Gross Domestic Product- The market value of all final goods and services produced within a country during a given period of time.
1.2. Then they measure the market to find out the prices and ruffly find out how many people are buying.
1.2.1. Net Exports - The value of all exports minus all imports.
1.3. Intermediate Goods They use new goods that are ready for the people to use.
1.3.1. Net Exports - the value of all exports minus all imports
2. What Does the Unemployment Rate Tell Us About an Economy’s Health?
2.1. Telling us that some seeking work.
2.1.1. Frictional unemployment - A type of unemployment that results when workers are seeking their first job or have left one job and are seeking another.
2.2. Some who changes jobs and is seeking job
2.3. This also can tell us weather there is a lot of jobs out there or not enough.
2.3.1. Unemployment rate - The percentage of the labor force that is not employed but is actively seeking work.
3. What Does the Inflation Rate Reveal About an Economy’s Health?
3.1. Inflation telling us that fewer people are buying and prices will go up.
3.2. Loss of jobs because there is less product.
3.2.1. Inflation Rate - The percentage increase in the average price level of goods and services from one month or year to the next.
3.3. people have less money to spend on things they want but dont need.
3.3.1. Literacy Rate - The percentage of people in a country who can read and write.
4. How Does the Business Cycle Relate to Economic Health?
4.1. With the business cycle it keep the economy at a changing pattern and reducing and contracts.
4.1.1. Business Cycle- A recurring pattern of growth and decline in economic activity over time.
4.2. Measuring the peak can can also relate the economy health.
4.3. Measuring each of the cycles can watch the economy and the size of it.
4.3.1. hyperinflation - an extreme and rapid rise in the price of goods and services.