GDP measurement, unemployment types, inflation measures such as CPI, and phases of the business cycle.
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- What is GDP per capita?
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Total GDP divided by the population; measures average output per person- What is potential GDP?
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The maximum amount of goods and services an economy can sustainably produce when all resources are fully employed- What is the output gap?
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The difference between actual GDP and potential GDP- What is the base year in real GDP calculations?
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The reference year against which all other years are compared for price measurements- What does purchasing power parity (PPP) adjust for?
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Differences in price levels and cost of living between countries so GDP can be fairly compared across nations- What is the difference between GDP and Gross National Product (GNP)?
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GDP measures output within a country's borders; GNP measures output by a country's citizens regardless of where they are located- Are sales of used goods included in GDP?
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No, because they were already counted as new goods in the year they were originally produced- How is a recession different from the contraction phase of the business cycle?
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A recession is a severe or prolonged contraction lasting at least two consecutive quarters of negative growth; not all contractions qualify as recessions- What is the labor force participation rate formula?
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(Labor force / Total adult population) × 100- What is underemployment?
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When someone works part-time but wants full-time work, or works in a job below their skill level and education- What is a discouraged worker?
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A person who has stopped actively looking for work because they believe no suitable jobs are available for them- What unemployment rate is typically considered full employment in the United States?
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Approximately 3.5-4.5%- How long does unemployment typically need to last to be classified as long-term unemployment?
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More than 26 weeks (6 months)- What is involuntary part-time employment?
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Working part-time because full-time work is not available, not by choice- What happens to the official unemployment rate when discouraged workers stop looking for work and leave the labor force?
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It decreases because discouraged workers are no longer counted in the labor force numerator
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