Macro Economic Issues ( Economic Growth, Recessions and Expansions, Unemployment, Inflation, International trade )

How much has the US's real output increased by since 1900

40x

What are the 2 concerns of Macro Economics?

-factors determining long-run growth, standard of living, & price level

-Causes & consequences of short-run fluctuations in economic activity, unemployment, & inflation

How much has the population in the US increased since 1900

4x

How much has the Average Labor Productivity increased since 1900 in the US

9x

What is GDP

the market value of all final goods and services produced within a country during a specified period of time.

What does Per Capita mean in Latin

Per Head

What is the Economic Growth of a country

How much its total level of consumption and output grow

What is Average Labor Productivity?

TOTAL OUTPUT / TOTAL # OF WORKERS EMPLOYED

What were some examples of Fluctuations in the US economic growth

-Great Depression ( 1929-1933)

-WWI (Expansion) (1939-1945)

Average Labor Productivity was what in 2019?

65k

What is a Recession

A period between a peak & trough

What is an Expansion

A period between a trough & peak

What is a Depression

Particular severe recessions

How big is China's production compared to the US

2/3rds the size of the US

What is China's Population compared to the US

5x larger

China's GDP per capitais what % as large as the US

15%

GDP per Capita sometimes called

Average output per captia

What is GDP per captia

the Average GDP per persons

What is India's GDP per captia compared to The US

3.2% as large

Where are the countries with the lowest levels of production per person?

-South Asia

-Africa

what is the Business Cycle

Alternating between expansions & recessions

The US Exported more than it imported until?

1950s

Since when has the US been an Importer

1970s

What is unemployment rate

percentage of the labor force that would like to work but cannot find unemployment

What is Unemployment Never?

0%

When does Unemployment rates normally rise?

During Recessions

What are the 3 types of Unemployment

-Fractional Unemployment

-Structural Unemployment

-Cyclical unemployment

What is Fractional Unemployment

% of people unemployed to to the normal process of moving jobs or entering the work force and finding there first job

What is Structural Unemployment

% of people unemployed because they have a skill set that isn't demanded much

Cyclical Unemployment

% of people unemployed due to lay offs or lower demand for workers caused by recessions

What is Inflation

When all prices rise together

Why is the US normally less dependent on imports?

because the US is big and Fat

When is a country in a Trade Surplus

When a country’s exports exceed imports, they are in trade surplus

When is a country in a Trade Deficit

When a country’s imports exceed exports, they are in a trade deficit