Chapter 13 Measuring the Economy

1. 13.3 What does the unemployment rate tell us about an economies health?

2. 13.2 How do economists measure the size of an economy?

3. Gross Domestic Product: What an Economy Produces

4. GDP is an economic indicator that measures a country's total economic output

5. Economists use GDP figure to determine how big an economy is, and if it's growing or shrinking and at what rate

6. When a country's GDP increases, so do Literacy, education, Health,, life expectancy, and standard of living

7. The unemployment rate is a good indicator of the health of an economy. High unemployment rates mean the overall health of the economy is poor.

8. Four types of unemployment Frictional, structural, seasonal, and cyclical.

9. The main economic cost of high unemployment is lost potential output

10. The BLS tracks inflation by gathering info on American's cost of living

11. 13.4 What does the inflation rate reveal about an economies health?

12. 13.5 how does the business cycle related to economic health?

13. Economists at BLS track changes in the cost of living using the consumer price index

14. The real cost of living is the normal cost of basic goods and services, adjusted for inflation

15. By using CPI to adjust for inflation, economists can calculate real wages and compare them over time

16. A business cycle consists of four phases

17. A period of economic growth is known as expansion

18. The point at which an expreansion ends marks the peak of the business cycle

19. Following the peak comes the contratcion phase of the business cycle

20. The lowest point of a contraction is called the through

21. Business cycles are popularly known as period of boom and bust