AP Macro Unit 2

Front

Gross Domestic Product

Back

The dollar value of all goods and services produced within a country’s borders in a given year.

Front

Which of the following is included in the calculation of the US GDP: The money that consumers save when using coupons, the benefit society receives from a cleaner environment, online purchases of used products, a computer produced in China by a US owned company, a plane produced in the US but sold in Mexico?

Back

a plane produced in the US but sold in Mexico

Front

The value of which of the following is counted in the US GDP: Foreign countries buying US treasury bills, Transfer payments to the elderly, salary bonuses given to investment bankers, undeclared wages paid to illegal aliens, the change in value of real estate in the US?

Back

salary bonuses given to investment bankers

Front

Gross Domestic Product is equivalent to the sum of: Consumer spending, investment spending, government purchases, and net exports

Back

Consumer spending, investment spending, government purchases and net exports

Front

Disinflation

Back

Prices increasing at slower rates.

Front

Intermediate goods

Back

Parts that go into the production of the final good.

Front

Frictional Unemployment

Back

Temporary unemployment or being between jobs but have transferable skills.

Front

Structural Unemployment

Back

Changes in the labor force make some skills obsolete and job loss is permanent.

Front

Cyclical Unemployment

Back

Unemployment caused from a recession.

Front

Natural Rate of Unemployment

Back

Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.