Quiz 5&6 Broad Concepts

_ measures the average change over time in the _ paid by typical urban consumers for a "market basket" of goods

The percentage change in a price index from one year to the next

Unemployment type #2 - due to a persistent mismatch between worker sills and job requirements

Employed + unemployed

Approach #1 - summing all spending on final goods (net exports can be negative)

GDP is imperfect because of _ quality

GDP is imperfect because of _ time

GDP is imperfect because of _ production

Market value of all final goods and services produced within a country in a given period

Nominal vs. Real _

Unemployment type #1 - short-term, such as graduates looking for a first job

Unemployment type #4 - _ is zero, only the other two remain (the "natural rate")

Approach #3 - sum off _ _ at every stage of production

Production valued at current year prices

How we adjust for inflation (purchasing power)

GDP is imperfect because of the _ economy

Unemployment type #3 - caused by business cycle recessions (e.g. layoffs during a downturn)

Approach #2 - summing all _ earned by factors of productions. The largest component of total _ in the U.S. is wages

Real interest rate ~ nominal interest rate - inflation rate

The _ _ measures the price level of all domestic goods

Production valued at base-year prices (removes the effect of inflation)