Unit 4 Part 1 Review

Market value (currency value) of all final goods and service produced within a nation in a year

• Gross Domestic Product (GDP)

• Net National Product (NNP)

• Gross National Product (GNP)

• Consumer Price Index (CPI)

Unemployment that occurs as workers change jobs looking for something that they prefer (shortest form of unemployment)

• Cyclical unemployment

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

Point on a business cycle that marks the end of an economic expansion

• Trough

• Recession

• Peak

• Recovery

Point in business cycle when GDP starts to increase or grow

• Recession

• Expansion

• Stagnation

• Depression

Target inflation rate

• 1%

• 2%

• 3%

• 4%

Goods used to produce final goods/services

• Final Goods

• Consumer Goods

• Intermediate Goods

• Raw Materials

used to calculate the Consumer Price Index and to compare prices

• Market basket

• Price index

• Cost of living

• Inflation rate

Unemployment that occurs due to downturns in the economy (downturns in the business cycle)

• Cyclical Unemployment

• Structural Unemployment

• Frictional Unemployment

• Seasonal Unemployment

GDP is the economic indicator used to measure which goal?

• Economic growth

• Inflation rate

• Unemployment rate

• Trade balance

periods of expansions and contractions (ups and downs) in the economy

• Economic fluctuation

• Business cycle

• Market trend

• Financial instability