1. 13.2 How do Economists measure the size of an Economy?
1.1. Economists use GDP to calculate the health of an economy
1.1.1. Nomial GDP
1.1.2. real GDP
1.1.3. Per Capita
1.2. market value and prices: are the prices buyers are willing to pay for a good or service.
1.3. value of living
1.3.1. life expectancy: Is defined as how long a person will live and can be affected my many things such as money and well being.
1.3.2. Infant mortality: Is the probability that a baby would live and grow up. High Infant mortality rate is shows a high value of living.
1.3.3. literacy rate: Is classified as the number of people who can read in a nation. A higher literacy rate is good for the value of living
2. 13.3 What dos the unemployment rate tell us about an economy's health
2.1. Unemployment rate: Is the amount of people that are jobless or are seeking employment.
2.1.1. frictional: people that are looking for a job or are between jobs
2.1.2. seasonal: jobs that come and go with the season such as a lawn mower or snow shovel-er.
2.1.3. cyclical: Jobs are lost because of a poor economy.
2.1.4. structural: when Machines replace the workers for less pay.
2.2. Surveys are sent out to attempt to get an estimate of the amount of people in the workforce the closer to the natural unemployment rate the better the economy's health.
2.2.1. The natural rate of unemployment is between 4-6% and is considered healthy
2.2.2. A high unemployment rate is bad but having no unemployment can be just as bad.
3. 13.4 what does the inflation rate tell us about an economy?
3.1. inflation rate: how fast prices increase
3.2. Consumer price index: how much everything costs for consumers
3.3. cost of living index:
3.3.1. nominal cost of living: how much it actually costs number-wise.
3.3.2. real cost of living: the included the unplanned things that happens in life