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Unit 4 vocabulary
UNIT 4: Economic Indicators
When a person gets a check-up, there are a number of ways for a doctor to determine if her patient is sick or healthy. Economists have a similar set of "tools" to help them determine the health of the economy. These "tools" or indicators are: GDP, unemployment, inflation (CPI), and aggregate supply and aggregate demand. If some of these terms sound new or unusual to you, that's okay! We'll be learning all about them in Unit 4.
How do we measure economic growth? How can we determine if our economy is in the recovery phase of the business cycle? How is unemployment measured? These are all questions that are answered in Unit 4 as we discover how to determine the health of the economy through several key economic indicators.
Unit 4 Standards Covered:
SSEMA1 The student will illustrate the means by which economic activity is measured.
a. Explain that overall levels of income, employment, and prices are determined by the spending and production decisions of households, businesses, government, and net exports.
b. Define Gross Domestic Product (GDP), economic growth, unemployment, Consumer Price Index (CPI), inflation, stagflation, and aggregate supply and aggregate demand.
c. Explain how economic growth, inflation, and unemployment are calculated.
d. Identify structural, cyclical, and frictional unemployment.
e. Define the stages of the business cycle; include peak, contraction, trough, recovery, expansion as well as recession and depression.
f. Describe the difference between the national debt and government deficits
Unit 4 Key Terms:
Know and understand the following terms in order to be successful on the Unit 4 exam!