Economic Indicators Quiz

economic indicators

statistics that help economists judge the health of an economy

gross domestic product

a dollar amount that represents the total value of everything produced within an economy during a given set of time (usually a year)

gross domestic product calculation

GDP=C+I+G+NX

unemployment rate

a percent that represents how many workers within an economy are unable to find a job

unemployment rate caluclation

number of people unemployed/number of people in labor force x 100

unemployed

someone who is the labor force, actively looking for work, but does not have a paying job

frictional unemployment

individuals whoa re not working because they are “between jobs”

structural unemployment

individuals who are not working because technological advances have made their jobs unnecessary

seasonal unemployment

individuals who are not working because their job is not needed during a specific time of year

cyclical unemployment

individuals who are not working because the economy is in decline and their former employers cannot afford to pay them

inflation rate

a percent that indicated how much overall prices are changing within a set time period (usually a year)

inflation rate calculation

CPI Now - CPI Yesterday/consumer price index yesterday x 100

consumer price index

a weighted average price of various goods that are purchased by most consumers within an economy

creeping inflation

slow, gradual inflation that is expected to occur

hyperinflation

rapid, unnatural rates of inflation

deflation

negative inflation, prices are actually going down