Ch 13 Flashcard: Economic Indicators

Front

What is the Consumer Price Index (CPI)?

Back

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

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How is the CPI calculated?

Back

By comparing the price of a basket of goods and services from one year to another.

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What is demand-pull inflation?

Back

Inflation that occurs when demand for goods and services exceeds their supply, leading to higher prices.

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What is cost-push inflation?

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Inflation that occurs when the costs of production increase, causing producers to raise prices.

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What is inflation?

Back

The overall rise in prices of goods and services in an economy over a period of time.

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What is real GDP?

Back

Gross Domestic Product that has been adjusted for inflation, reflecting the true value of goods and services.

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What is nominal GDP?

Back

Gross Domestic Product measured at current market prices, without adjusting for inflation.

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What constitutes the labor force?

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The total number of people who are either employed or actively seeking employment.

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What is the difference between unemployment and underemployment?

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Unemployment refers to individuals who are not working but are actively seeking work, while underemployment refers to individuals working in jobs that do not utilize their skills or provide adequate hours.

Front

What is the significance of economic indicators?

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Economic indicators are statistics that provide information about the economic performance and health of a country.