1.1. Gross Domestic Product, which is an economic indicator that measures a country’s total economic output.
1.2. The market value which is how much buyers are willing to pay in a market place is measured by the market price put on each product.
1.3. By calculating the amounts of goods and services produced within a country.
1.4. Gross Domestic Product: the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
1.5. Market Value: The price buyers are willing to pay for a good or service in a competitive market.
1.6. Picture
2. 13.4-- What does the inflation rate tell us about an economies health?
2.1. The BLS studies the cost of buying the goods and services that households like yours purchase every day. Because, the cost of living changes all the time because prices do not stay the same.
2.2. Price and wage inflation, in essence if you spend $4 on a pair of shoes 50 years ago it would be the same as buying a $40 dollar pair now.
2.3. Creeping inflation, hyperinflation and deflation are also major components that play part in the economies prices and how they fluctuate.
2.4. Inflation rate: the percentage increase in the average price level of goods and services from one month or year to the next.
2.5. deflation: a fall in the price of goods and services; the opposite of inflation.
3. 13.3--What does the unemployment rate tell us about an economies health?
3.1. The four types of unemployment, frictional. seasonal, cynical and structural.
3.2. It is hard to measure these things accurately, the BLS tries it's best to do so but there are several flaws.
3.3. The official unemployment rate serves as a fairly good indicator of conditions in the labor market. And in general, when the rate is high, the overall health of the economy is poor.
3.4. discouraged workers: unemployed workers who have ceased to look for work; discouraged workers are not considered part of the labor force and are not factored into the unemployment rate
3.5. unemployment rate: the percentage of the labor force that is not employed but is actively seeking work
3.7. This article contains information on how the United States unemployment rate has been steadily dropping over the years to a now very low 5%. We are adding more and more jobs every day to the U.S.
4. 13.5--How does the business cycle relate to economic health?
4.1. The business cycle consists of four phases. These phases include a period of growth and a period of decline, as well as the turning points that mark the shift from one period to the next.
4.2. Expansion, Peak, Contraction, and Trough are the four major components that make the business cycle flow.
4.3. Some recessions are short and relatively mild in their effects. Others are severe. On rare occasions, a recession will last a long time and cause serious damage to the economy. Which can cause something like the great depression
4.4. business cycle: a recurring pattern of growth and decline in economic activity over time
4.5. recession: a period of declining national economic activity, usually measured as a decrease in GDP for at least two consecutive quarters (six months)
