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Open and view the Infographic below, then answer the questions that follow by clicking the + sign below this post. Be sure to include your name as the title of your post.
1. What does GDP stand for?
2. What does GDP measure? What is its purpose?
3. What is the calculation to measure GDP? What does each letter stand for?
4. Are imports part of the calculations of a nation's GDP? How do imports impact a nation's GDP?
5. What types of goods/services are not counted in GDP?

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Watch the video below, then in detail, answer the following questions by clicking the + sign below this post. Be sure to include your name as the title of your post.
1. What is nominal GDP?
2.  What is Real GDP?
3. Which GDP is a better measure of an economy's growth? Why?

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Nominal GDP vs Real GDP Explained  |  Gross Domestic Product  |  IB Macroeconomics

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Watch the video below, then answer the following questions by clicking the + sign below this post. Be sure to include your name in the title of your post.
1. List and describe each of the four types of unemployment.
2. Provide an example for each of the four types of unemployment.
3. Provide an example of a person who is NOT a part of the labor force and therefore would not be considered unemployed.

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(Macro) Episode 19: Types of Unemployment

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Click on the Inflation link below. Read through the information, and answer the following questions by clicking the + sign below this post. Be sure to include your name as the title of your post.
1. Explain what inflation is.
2. How do economists measure inflation?
3. What are the two causes of inflation? Explain what each is.

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What Is Inflation?

Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time. The rise in the general level of prices, often expressed a a percentage means that a unit of currency effectively buys less than it did in prior periods.

Inflation can be contrasted with deflation, which occurs when the purchasing power of money increases and prices decline.

Understanding Inflation

While it is easy to measure the price changes of individual products over time, human needs extend much beyond one or two such products. Individuals need a big and diversified set of products as well as a host of services for living a comfortable life. They include commodities like food grains, metal and fuel, utilities like electricity and transportation, and services like healthcare, entertainment, and labor. Inflation aims to measure the overall impact of price changes for a diversified set of products and services, and allows for a single value representation of the increase in the price level of goods and services in an economy over a period of time.

As a currency loses value, prices rise and it buys fewer goods and services. This loss of purchasing power impacts the general cost of living for the common public which ultimately leads to a deceleration in economic growth. The consensus view among economists is that sustained inflation occurs when a nation's money supply growth outpaces economic growth.

To combat this, a country's appropriate monetary authority, like the central bank, then takes the necessary measures to manage the supply of money and credit to keep inflation within permissible limits and keep the economy running smoothly.

Theoretically, monetarism is a popular theory that explains the relation between inflation and money supply of an economy. For example, following the Spanish conquest of the Aztec and Inca empires, massive amounts of gold and especially silver flowed into the Spanish and other European economies. Since the money supply had rapidly increased, the value of money fell, contributing to rapidly rising prices.

Inflation is measured in a variety of ways depending upon the types of goods and services considered and is the opposite of deflation which indicates a general decline occurring in prices for goods and services when the inflation rate falls below 0%.

Causes of Inflation

An increase in the supply of money is the root of inflation, though this can play out through different mechanisms in the economy. Money supply can be increased by the monetary authorities either by printing and giving away more money to the individuals, by legally devaluing (reducing the value of) the legal tender currency, more (most commonly) by loaning new money into existence as reserve account credits through the banking system by purchasing government bonds from banks on the secondary market. In all such cases of money supply increase, the money loses its purchasing power. The mechanisms of how this drives inflation can be classified into three types: Demand-Pull inflation, Cost-Push inflation, and Built-In inflation.

Demand-Pull Effect

Demand-pull inflation occurs when an increase in the supply of money and credit stimulates overall demand for goods and services in an economy to increase more rapidly than the economy's production capacity. This increases demand and leads to price rises.

With more money available to individuals, positive consumer sentiment leads to higher spending, and this increased demand pulls prices higher. It creates a demand-supply gap with higher demand and less flexible supply, which results in higher prices.

Cost-Push Effect

Cost-push inflation is a result of the increase in prices working through the production process inputs. When additions to the supply of money and credit are channeled into commodity or other asset markets and especially when this is accompanied by a negative economic shock to the supply of key commodity, costs for all kind of intermediate goods rise. These developments lead to higher cost for the finished product or service and work their way into rising consumer prices. For instance, when the an expansion of the money supply creates a speculative boom in oil prices the cost of energy of all sorts of uses can rise and contribute rising consumer prices, which is reflected in various measures of inflation.

Built-In Inflation

Built-in inflation is related to adaptive expectations, the idea that people expect current inflation rates to continue in the future. As the price of goods and services rises, workers and others come to expect that they will continue to rise in the future at a similar rate and demand more costs/wages to maintain their standard of living. Their increased wages result in higher cost of goods and services, and this wage-price spiral continues as one factor induces the other and vice-versa.

Types of Price Indexes

Depending upon the selected set of goods and services used, multiple types of baskets of goods are calculated and tracked as price indexes. Most commonly used price indexes are the Consumer Price Index (CPI) and the Wholesale Price Index (WPI).

The Consumer Price Index

The CPI is a measure that examines the weighted average of prices of a basket of goods and services which are of primary consumer needs. They include transportation, food, and medical care. CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them based on their relative weight in the whole basket. The prices in consideration are the retail prices of each item, as available for purchase by the individual citizens. Changes in the CPI are used to assess price changes associated with the cost of living, making it one of the most frequently used statistics for identifying periods of inflation or deflation. In the U.S., the Bureau of Labor Statistics reports the CPI on a monthly basis and has calculated it as far back as 1913.﻿﻿

The Wholesale Price Index

The WPI is another popular measure of inflation, which measures and tracks the changes in the price of goods in the stages before the retail level. While WPI items vary from one country to other, they mostly include items at the producer or wholesale level. For example, it includes cotton prices for raw cotton, cotton yarn, cotton gray goods, and cotton clothing. Although many countries and organizations use WPI, many other countries, including the U.S., use a similar variant called the producer price index (PPI).

The Producer Price Index

The producer price index is a family of indexes that measures the average change in selling prices received by domestic producers of intermediate goods and services over time. The PPI measures price changes from the perspective of the seller and differs from the CPI which measures price changes from the perspective of the buyer.﻿﻿

In all such variants, it is possible that the rise in the price of one component (say oil) cancels out the price decline in another (say wheat) to a certain extent. Overall, each index represents the average weighted price change for the given constituents which may apply at the overall economy, sector, or commodity level.

The Formula for Measuring Inflation

The above-mentioned variants of price indexes can be used to calculate the value of inflation between two particular months (or years). While a lot of ready-made inflation calculators are already available on various financial portal and websites, it is always better to be aware of the underlying methodology to ensure accuracy with a clear understanding of the calculations. Mathematically,

Percent Inflation Rate = (Final CPI Index Value/Initial CPI Value)*100

Say you wish to know how the purchasing power of $10,000 changed between Sept. 1975 and Sept. 2018. One can find price index data on various portals in a tabular form. From that table, pick up the corresponding CPI figures for the given two months. For Sept. 1975, it was 54.6 (Initial CPI value) and for Sept. 2018, it was 252.439 (Final CPI value).﻿﻿ Plugging in the formula yields:

Percent Inflation Rate = (252.439/54.6)*100 = (4.6234)*100 = 462.34%

Since you wish to know how much $10,000 of Sept. 1975 would worth be in Sept. 2018, multiply the percent inflation rate with the amount to get the changed dollar value:

Change in dollar value = 4.6234 * $10,000 = $46,234.25

This means that $10,000 in Sept. 1975 will be worth $46,234.25. Essentially, if you purchased a basket of goods and services (as included in the CPI definition) worth $10,000 in 1975, the same basket would cost you $46,234.25 in Sept. 2018.

Pros and Cons of Inflation

Inflation can be construed as either a good or a bad thing, depending upon which side one takes, and how rapidly the change occurs.

For example, individuals with tangible assets that are priced in currency, like property or stocked commodities, may like to see some inflation as that raises the price of their assets which they can sell at a higher rate. However, the buyers of such assets may not be happy with inflation, as they will be required to shell out more money. Inflation-indexed bonds are another popular option for investors to profit from inflation.

On the other hand people holding assets denominated in currency, such as cash or bonds, may also not like inflation, as it erodes the real value of their holdings. Investors looking to protect their portfolios from inflation should consider inflation-hedged asset classes, such as gold, commodities, and Real Estate Investment Trusts (REITs).

Inflation promotes speculation, both by businesses in risky projects and by individuals in stocks of companies, as they expect better returns than inflation. An optimum level of inflation is often promoted to encourage spending to a certain extent instead of saving. If the purchasing power of money falls over time the, then there may be a greater incentive to spend now instead of saving and spending later. It may increase spending, which may boost economic activities in a country. A balanced approach is thought to keep the inflation value in an optimum and desirable range.

High and variable rates of inflation can impose major costs on an economy. Businesses, workers, and consumers must all account for the effects of generally rising prices in their buying, selling, and planning decisions. This introduces an additional source of uncertainty into the economy, because they may guess wrong about the rate of future inflation. Time and resources expended on researching, estimating, and adjusting economic behavior around expected rise in the general level of prices, rather than real economic fundamentals, inevitably represents a cost to the economy as a whole.

Even a low, stable, and easily predictable rate of inflation, which some consider otherwise optimal, may lead to serious problems in the economy, because of how, where, and when the new money enters the economy. Whenever new money and credit enters the economy it is always into the hands of specific individuals or business firms, and the process of price level adjustment to the new money supply proceeds as they then spend the new money and it circulates from hand to hand and account to account through the economy.

Along the way, it drives up some prices first and later drives up other prices. This sequential change in purchasing power and prices (known as the Cantillon effect) means that the process of inflation not only increases the general price level over time, but it also distorts relative prices, wages, and rates of return along the way. Economists in general understand that distortions of relative prices away from their economic equilibrium is not good for the economy, and Austrian economists even believe this process to be a major driver of cycles of recession in the the economy.

Controlling Inflation

A country's financial regulator shoulders the important responsibility of keeping inflation in check. It is done by implementing measures through monetary policy, which refers to the actions of a central bank or other committees that determine the size and rate of growth of the money supply.

In the U.S., the Fed's monetary policy goals include moderate long-term interest rates, price stability, and maximum employment, and each of these goals is intended to promote a stable financial environment. The Federal Reserve clearly communicates long-term inflation goals in order to keep a steady long-term rate of inflation, which is thought to be beneficial to the economy.

Price stability-or a relatively constant level of inflation-allows businesses to plan for the future since they know what to expect. The Fed believes that this will promote maximum employment, which is determined by non-monetary factors that fluctuate over time and are therefore subject to change. For this reason, the Fed doesn't set a specific goal for maximum employment, and it is largely determined by employers' assessments. Maximum employment does not mean zero unemployment, as at any given time there is a certain level of volatility as people vacate and start new jobs.

Monetary authorities also take exceptional measures in extreme conditions of the economy. For instance, following the 2008 financial crisis, the U.S. Fed has kept the interest rates near zero and pursued a bond-buying program called quantitative easing.﻿﻿ Some critics of the program alleged it would cause a spike in inflation in the U.S. dollar, but inflation peaked in 2007 and declined steadily over the next eight years. There are many complex reasons why QE didn't lead to inflation or hyperinflation, though the simplest explanation is that the recession itself was a very prominent deflationary environment, and quantitative easing supported its effects.

Consequently, the U.S. policymakers have attempted to keep inflation steady at around 2% per year.﻿﻿ The European Central Bank has also pursued aggressive quantitative easing to counter deflation in the eurozone, and some places have experienced negative interest rates, due to fears that deflation could take hold in the euro zone and lead to economic stagnation.﻿﻿ Moreover, countries that are experiencing higher rates of growth can absorb higher rates of inflation. India's target is around 4%, while Brazil aims for 4.25%.﻿﻿ ﻿﻿

Hedging Against Inflation

Stocks are considered to be the best hedge against inflation, as the rise in stock prices are inclusive of the effects of inflation. Since additions to the money supply in virtually all modern economies occur as bank credit injections through the financial system, much of the immediate effect on prices happens financial assets that are priced in currency, such as stocks.

Additionally, special financial instruments exist which one can use to safeguard investments against inflation. They include Treasury Inflation Protected Securities (TIPS), low-risk treasury security that is indexed to inflation where the principal amount invested is increased by the percentage of inflation. One can also opt for a TIPS mutual fund or TIPS-based exchange traded fund (ETFs). To get access to stocks, ETFs and other funds that can help to avoid the dangers of inflation, you'll likely need a brokerage account. Choosing a stockbroker can be a tedious process due to the variety among them.

Gold is also considered to be a hedge against inflation, although this doesn't always appear to be the case looking backwards.

Extreme Examples of Inflation

Since all world currencies are fiat money, the money supply could increase rapidly for political reasons, resulting in rapid price level increases. The most famous example is the hyperinflation that struck the German Weimar Republic in the early 1920s. The nations that had been victorious in World War I demanded reparations from Germany, which could not be paid in German paper currency, as this was of suspect value due to government borrowing. Germany attempted to print paper notes, buy foreign currency with them, and use that to pay their debts.

This policy led to the rapid devaluation of the German mark, and hyperinflation accompanied the development. German consumers responded to the cycle by trying to spend their money as fast as possible, understanding that it would be worth less and less the longer they waited. More and more money flooded the economy, and its value plummeted to the point where people would paper their walls with the practically worthless bills. Similar situations have occurred in Peru in 1990 and Zimbabwe in 2007-2008.

Frequently Asked Questions

What causes inflation?

There are three main causes of inflation: demand-pull inflation, cost-push inflation, and built-in inflation. Demand-pull inflation refers to situations where there are not enough products or services being produced to keep up with supply, causing their prices to increase. Cost-push inflation, on the other hand, occurs when the cost of producing products and services rises, forcing businesses to raise their prices. Lastly, built-in inflation-sometimes referred to as a "wage-price spiral"-occurs when workers demand higher wages to keep up with rising living costs. This in turn causes businesses to raise their prices in order to offset their rising wage costs, leading to a self-reinforcing loop of wage and price increases.

Is inflation good or bad?

Too much inflation is generally considered bad for an economy, while too little inflation is also considered harmful. Many economists advocate for a middle-ground of low to moderate inflation, of around 2% per year. Generally speaking, higher inflation harms savers because it erodes the purchasing power of the money they have saved. However, it can benefit borrowers because the inflation-adjusted value of their outstanding debts shrinks over time.

What are the effects of inflation?

Inflation can affect the economy in several ways. For example, if inflation causes a nation's currency to decline, this can benefit exporters by making their goods more affordable when priced in the currency of foreign nations. On the other hand, this could harm importers by making foreign-made goods more expensive. Higher inflation can also encourage spending, as consumers will aim to purchase goods quickly before their prices rise further. Savers, on the other hand, could see the real value of their savings erode, limiting their ability to spend or invest in the future.

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Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time.

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Tori Sibley                           Gross Domestic Product                

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Tori Sibley                           Gross Domestic Product                

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how well the economy is growing     and to see if it's growing gradually
C+I+G+(X-M) C= Consumer I=Investments G=Gov't  X=Exports M=Imports                                                 No, they can mess it up if counted because they are not made here.

Black market goods,stocks and bonds, and intermediate goods are not counted.

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1. GDP stands for Gross Domestic Product.
2. It measures the value of final goods and services produced in a country in a time period. The purpose is to show how well the economy is performing.
3. The calculation is C+I+G+NX where C stands for Consumption, I stands for Investment, G stands for Government Expenditures, and NX stands for net exports.
4. Imports aren't included because they are not produced in the country. It impacts a nation's GDP because they must be subtracted form exports in the calculation.
5. Goods and Services that aren't included are intermediate goods, previously used goods, pure financial transactions, and transfer payment.

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1) Gross Domestic Product
2) The total value of all final goods and services produced in a country in a year
3) C+I+G+(X-M)
C- Consumer
I- Investment
G- Gov't
X-  Exports
M- Imports
4) No they are not counted because they are not made in the country that imported them. It impacts the nations GDP because it is subtracted from the exports from a country.
5)Intermediate goods, previously used goods, pure financial transactions, and transfer payment

# data[].attributes.body
1. Gross Domestic Product
2. The final value of all the final goods and services produced in a country in a given time. GDP shows how well an economy is doing.
3. C+I +G +NX=GDP
Consumption, Private Investment, Government Expenditures, Net Exports
4. no; They don't impact GDP because they aren't counted.
5. intermediate goods, previously used goods, purchases of stocks and bonds, social security benefits

# data[].attributes.body
1. Gross Domestic Product
2. The total value of all goods and services produced within a county's border in a given time period. It measures the economic growth of said country.
3. C + I + G + NX = GDP. C = Individual Consumption. I = Private Investments. G = Government Expenditures. NX = Net Exports
4. No because they come from outsider of a country's borders. They could give an inaccurate measure of the economic growth.
5. Payment transfers, Intermediate goods, Pure financial transactions, and Previously used goods.

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Nominal GDP is GDP not fixed for inflation

Real GDP is the GDP fixed for inflation

Real because it makes the inflation rate equal so you can tell the growth better.k

# data[].attributes.body
1. Gross Domestic Product
2. Economic growth. The total value of all final goods and services produced within a country's borders in a given time period.
3. C + I + G + (X-M)
4. No, imports are produced in a different country and do not count towards GDP. It affects GDP because imports are subtracted from exports to find the net exports.
5. Goods that aren't counted include: intermediate goods, previously used goods, pure financial transactions, and transfer payments.

# data[].attributes.body
1)gross domestic product
2)The total value of all final goods and services produced within a countries borders in a given time period (measures economic growth).
3) C+I+G+NX=GDP
C-personal consumption expenditures
I-private investment
G-government expenditures
NX-net exports
4) No because they are produced in a different country. They are subtracted to find the net export.
5)intermediate goods,previously used goods, pure financial transactions, and transfer payment

# data[].attributes.body
1. Gross Domestic Product
2. It measures the total value of all final goods and services produced within countries in a certain time period.
3. C +I +G +(X - M)
Consumption, Investment, Government, and Net Exports
4. No because imports are received from other countries and doesn't count towards GDP.
5. Intermediate goods, previously used goods, pure financial transactions, and transfer payments.

# data[].attributes.body
1. Gross Domestic Product
2.It measure the currency value of final goods and services within a country in a period of time.
3.C(consumers)+ I(Investors)+ G(government)+ (m-x)(foreign)
4.No, it impacts the nation GDP by net exports
5. Intermediate goods, used goods, underground production, finacial trans action, household, transfer payment

# data[].attributes.body
1. Gross Domestic Product
2. The total value of all final goods and services produced within a country in a given time. Measures the economic growth of a country.
3. C+I+G(X-M). C is consumers, I is investment, G is government, X-M is net exports.
4.No, because imports are created in another country and do not count towards GDP.
5. Intermediate goods, Imports, Black Market goods and services.

# data[].attributes.body
1. Gross Domestic Product
2. Total value of final goods produced in a certain time
3. C+I+G+(X-M), Consumer (C), Investment (I), Government (G), Exports (X), Imports (M)
4. No imports are subtracted from exports because imports aren't made within the country
5. Intermediate Goods, Used Goods, Stock, and Financial Services

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Inflation is a quantitative measure of the amount added to the value of money.
by putting the total market basket price of the target year over the total market basket price for the base year then times by 100 and turn into a percentage.

Making more money so we have to much supply makes the value of money have to increase to keep up with the supply also known as the Demand-Pull Effect and rising prices which is when a price well rises.

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1. Gross Domestic Product
2.  Measures the monetary value of final goods and services. It's important because it gives information about the size of the economy and how an economy is performing.
3. GDP = C+G+I+NX. C-Consumption, G- Government Spending, I-Investment, NX- Net Exports.
4. Yes. The money spent on imports leaves the economy, and that decreases the importing nation's GDP.
5. Intermediate goods, used goods, transfer payments, non-market activities, illegal goods.

# data[].attributes.body
1. Gross domestic product
2. Is the total value of all final goods and services produced in a country at a certain time.
3. C+I+G+(X-M), Consumption expenditures, Investments, Government Expenditures, Net Exports.
4. No since they are not being produced in this country.
5. intermediate goods, previously used goods, pure financial transactions, and transfer payments.

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Frictional-unemployment caused by the natural frictions of the economy, a new college student with skills for a job.

Structural- unemployment caused by structural changes in the economy, NAPTA

Seasonal- unemployment due to a seasonal change, agriculturist job

Cyclical- unemployment due to contractions in the economy, business cycle

A stay-at-home mom of 3 kids.

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1. Gross domestic product
2. Total value of all final goods produced
3. C+I+G+(X-M) Consumer, Investment, Government, Exports, Imports
4. No because they are not produced inside the USA
5. Black market, stocks and intermediate goods

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1. Nominal GDP measures value of a nation's output produced in a year,  expressed in the value of the prices charged for that year. It does not take into account inflation.
2. Real GDP is the value of a nation's output in a particular year adjusted changes in the price level from a base year. It does take into account inflation.
3. Real GDP is a better measure because it offers a more accurate measure of the quantity of goods and services a nation produces because it adjusts for price changes.

# data[].attributes.body
1. Nominal GDP: Measures the value of a nation's output produced in a year, and doesn't take into account inflation.
2. Real GDP: is the value of a nation's output in a particular year, adjusted for inflation.
3. Real GDP. It offers a more accurate measurement of the actual quantity of goods through adjustment for inflation.

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1. Nominal GDP is the GDP calculation without adjustment to inflation
2. Real GDP is adjusted to inflation
3. Real GDP because it shows the growth of the economy in comparison to previous years

# data[].attributes.body
1. Nominal GDP is GDP not adjusted for inflation.
2. Real GDP is GDP after being adjusted for inflation.
3. Real GDP is a better measure of an economy's growth because it shows real growth throughout the years rather than just having a larger amount of money in circulation.

# data[].attributes.body
1. measures the value of a nation's output produced in a year, expressed in the value of prices charged for that year. does not include inflation.
2. Real GDP measures the output of a country with price changes. Includes inflation
3.Real GDP because is includes the price change and gives a more accurate number of the GDP.

# data[].attributes.body
1. GDP without inflation added
2.Real GDP is inflation added to the price of the good from back then
3. Real GDP shows the growth of the economy better because it shows if the businesses are declining in money or increasing.

# data[].attributes.body
1) Nominal GDP does not take into account the amount of inflation
2)Real GDP does take into account the amount of inflation for a countrys GDP
3) Real GDP because it takes into account the amount of inflation in a country.

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1. Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
2. Economists measure inflation using Consumer Price Index.
3. Causes of inflation:
Demand-pull: When demand for goods/services exceeds production capacity.
Cost-push: When production costs increase prices
Built-in inflation: When prices rise, wages rise too, in order to maintain living costs.

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1 a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time..
2. Final CPI Index Value / Initial CPI Index Value
3. Demand-Pull effect: when the demand is higher than the production rate. Cost-Push Inflation: increase in the cost of the input process.

# data[].attributes.body
1. Inflation is the rise in the price of basket goods over a period of time
2. Consumer Price Index is used to measure the value of the average basket goods a household purchases
3. The demand-pull effect is where the demand for goods increases more rapidly than the producers can produce. The cost-push effect is where the price of production process inputs increases

# data[].attributes.body
1. Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods in an economy increases over time.
2. by recording the price of a market basket of goods over time
3. Demand-Pull Effect- when the overall demand for goods and services in an economy increases more rapidly than the economy's production capacity
Cost-Push Effect- a result of the increase in the prices of production process inputs

# data[].attributes.body
1. Nominal GDP measures the value of the nation's output produced in a year and doesn't include inflation.
2. Real GDP measures the output of a country with price changes and includes inflation.
3. Real GDP because it includes the price changes and gives a more accurate number of GDP.

# data[].attributes.body
1)Nominal GDP measures the value of a nation's output produced in a year, expressed in the value of the prices charged for that year and doesn't take into account inflation.
2)Real GDP is the value of a nation's output in a particular year adjusted for changes in price level from a base year.
3)Real GDP is more accurate bc it measures the actual quantity of goods and services a nation produces bc it adjusts for price changes.

# data[].attributes.body
1. Inflation is the general price level increasing over time.
2. Economist find inflation by This Years Price minus Base Years Price dividing all by Base Year Price times 100
3.Demand-pull -try to buy more than the economy can produce, which produce shortages, and merchant raises prices
Cost-Push: prices of inputs for manufacturing increase

# data[].attributes.body
1.  Inflation is a measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
2. Economists measure inflation using the Consumer Price Index which looks at the change in price of a basket of goods over time.
3. Two causes of inflation are demand-pull inflation and cost-push inflation. Demand-pull inflation is when the overall demand for goods and services in an economy increases more rapidly than the economy's production capacity. Cost-push inflation is caused by the increase in price of production process inputs.

# data[].attributes.body
1. Frictional unemployment is due to the national frictions of the economy, or the worker is between jobs.
Structural unemployment is due to structural changes in the economy which eliminates jobs for some and creates jobs for others.
Seasonal unemployment is due to seasonal trends and can usually be predicted.
Cyclical unemployment is due to contractions in the economy.
2. An example of frictional unemployment is a student who has graduated and looking for a job. An example of structural unemployment was NAFTA which moved blue collar workers to white collar jobs. An example of seasonal unemployment would be a person working as Santa Claus in the winter because they wouldn't have a job at other times of the year. An example of cyclical unemployment are times of recession such as the Great Depression.
3. Someone who is not in the labor force is a stay-at-home mom or retired person.

# data[].attributes.body
1. Nominal GDP measures the value of a nation's output produced in a year, expressed in the value of the prices changed for that year.
2. Real GDP is the value of the nation's output in a particular year adjusted for changes in the price level from a base year.
3. Real GDP

# data[].attributes.body
1. Nominal gap measures the value of a nation's output produced in a year, not including inflation.
2. The value of a nation's output in a particular year adjusted for changes in the price level from a base year.
Real because it offers a more accurate measure of the actual quantity of goods and services produced.

# data[].attributes.body
1) Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
2) The measure inflation with consumer price index (CPI).
3) Demand-pull inflation occurs when the overall demand for goods and services in an economy increases more rapidly than the economy's production capacity.
3) Cost-push inflation is a result of the increase in the prices of production process inputs

# data[].attributes.body
1. a quantitative measure of the of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
2. Consumer Price Index which records the change in prices over time.
3. Demand- pull which is when the demand overall increases
Cost-push which increases the production prices to process inputs.

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1. Gross domestic product
2.Measures the total value of all final goods and services produced within a countries borders. Used to measure one's economy.
3. C+I+G+NX where c is consumers, I is investment, G is government spending, and NX is net exports
4.Imports are subtracted from exports in calculating a GDP because they are not produced in the country.
5.Intermediate goods, imports, and black market.

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1. frictional- due to natural frictions of the economy
structural- unemployment due to structural changes in the economy
seasonal- due to seasonal trends
cyclical- due to contractions in the economy
2. frictional- college grad interviewing for jobs
structural- NAFTA passing
seasonal- more workers needed in retail at Christmas time
cyclical- recession
3. stay-at-home mom

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1.
Frictional - unemployment because the worker is between jobs
Structural - fundamental change in the operations of the economy that eliminate jobs and create others.
Cyclical - unemployment aligned to swings in the business cycle
Seasonal - unemployment resulting from change in seasonal trends
2.
Frictional - Short term contract engineer that changes jobs every 6 to 8 months
Structural - Machines replace factory workers
Cyclical - Great Depression left many jobless
Seasonal - Lifeguard can only work in the summer.
3. A person who has deliberately stopped looking for a job because they are discouraged.

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1. Nominal GDP is the measure of a nations output produced in a year, expressed in the value of the prices charged for that year, but it doesn't include inflation.
2. Real GDP is the value of a nations output in a certain year adjusted for changes in the price level from a base year.
3. Real GDP is more accurate because it includes inflation.

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Frictional: Unemployment due to the natural frictions of the economy.
EX: Someone switching from one job to another.
Structural: Unemployment due to structural changes in the economy that eliminate some jobs and create others for which the unemployed are unqualified.
EX: New technology that increases productivity in the workplace replaces an employee.
Seasonal: Unemployment due to seasonal trends.
EX: A mall Santa loses his job after Christmas.
Cyclical: Unemployment due to contractions in the economy.
EX: During the Great Depression, many lost their jobs.

EX: Someone who is under the age of 16.

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1. Structural: fundamental change in the operation of the economy reduces demand for workers and their skills
Frictional: unemployment b/c worker is between jobs
Seasonal: unemployment resulting in changes in weather/demand for certain product
Cyclical:  unemployment aligned to swing in business cycle
2. Structural- Worker was let down because of new technology
Frictional- Person either chooses to go to work after school
Seasonal- Summer is over so there is no need for a lifeguard at a pool.
Cyclical- Pandemic closes all workforce.
3. Anyone under 16

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1)  Frictional- Unemployment due to the natural frictions.
- Structural- Unemployment due to structural changes in the economy
- Seasonal- Unemployment due to seasonal trends
- Cyclical- Unemployment due to contractions in the economy
2) Frictional-  A worker left their job to find a better one
- Structural- A workers skills was no longer needed because of new technology
- Seasonal- A mall Santa
- Cyclical- Households equipment and motor vehicle tends to fall in periods of reduced economy
3) Someone that is under the age of 16.

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1. Frictional: due to the natural frictions of the economy. Structural: due to structural changes in the economy that eliminate some jobs and create others. Seasonal: due to seasonal trends. Cyclical: due to contractions in the economy
2. Example of Frictional: short term contractor. Structural: New Technology. Seasonal: Jobs at haunted house Cyclical: Recession
3. A person who quit or was fired from a job, but does not want to find another form of work.

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Frictional- when the worker is in between jobs, college grad interviewing for jobs
Structural- change in the economy which causes the worker to be unemployed, NAFTA passing
Seasonal- work needed seasonal and is unemployed for the rest of the seasons, no need for a lifeguard if it's winter time.
Cyclical- due to contractions in the economy, business cycle

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1.Nominal GDP is measured by the country's output for that year, expressed in the value of the prices charged for that year.
2.Real GDP is adjusted for inflation.
3.Real GDP is a better measure of one's economy because it is more realistic and more specific.

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1. Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
2. Economist use the Consumer Price Index (CPI) to measure inflation.
3. Demand-pull and cost-push cause inflation. Demand-pull inflation is inflation caused by a shortage (increase in demand). Cost-push inflation is inflation caused by increases in production cost.

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1)Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
2) CPI
3) Demand-pull:when the overall demand for goods and services in an economy increases more rapidly than the economy's production capacity
Cost-push:a result of the increase in the prices of production process inputs

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1.Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
2.Economists use the consumer price index to find the rate of inflation. Change in Inflation = (Final CPI Index Value/Initial CPI Value)
3.Demand-pull inflation occurs when the overall demand for goods and services in an economy increases more rapidly than the economy's production capacity. Cost-push inflation is a result of the increase in the prices of production process inputs.

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1.  Is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
2. Economists use CPI(consumer price index).
3. Demand pull occurs when the overall demand for goods and services in an economy increases more rapidly than the economy's production capacity.
Cost push is a result of the increase in the prices of production process inputs.

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1)Frictional-due to the natural frictions of the economy
Structural:due to structural changes in the economy that eliminate  some jobs and create others.
Seasonal:unemployment due to seasonal trends
Cyclical:due to contractions in the economy
2)Frictional-short term contractor
Structural: passage of NAFTA (lost blue collar jobs and gained white collar jobs)
Seasonal:people who sell Christmas trees
Cyclical: jobs lost during great depression
3)stay at home mother

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1. Frictional unemployment, Structural unemployment, Seasonal unemployment, Cyclical unemployment
2. Frictional - A newly graduated college student looking for a job
Structural - New technology is invented and outdated the skills of an old worker.
Seasonal - A Christmas tree seller.
Cyclical - A worker from the great depression.
3, A citizen that is retired and enjoying their relaxing days.

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1.Frictional- It is time spent between jobs when a worker is searching for a job or transferring from one job to another.
Example- worker is looking for a different job because he/she quit the last one.
Structural-unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
Example- worker fired because he was replaced by a machine that could do his job better.
Seasonal-occurs as demands shift from one season to the next.
Example- Man dresses as Santa clause for Christmas season.

Cyclical-  It would rise at a time of recession, while reduce when the economy starts recovering.
Example-great depression worker

2.Men and women in the military are technically not in the workforce so they can't be called unemployed.

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1. frictional unemployment- due to the national frictions of the economy
, structural unemployment- due to the structural changes in the economy that eliminates some jobs and creates others for which the unemployed are qualified
, seasonal unemployment- seasonal due to seasonal trends
, cyclical unemployment- due to the contractions in the economy
2. Frictional- Full Time college student who starts interviewing for jobs,
structural- new tech is invented and has outdated people and their ability to help.
seasonal- Elf at a Christmas shop
cyclical- recession
3. a stay at home parent

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1. Gross Domestic Product
2.total value of final g/s produced; measures the economy
3.C+I+G+NX
C-consumers
I-investments
G-government
NX- net exports
4.no because they aren't produced in the country
5.intermediate goods, black market, imports

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1. nominal is not fixed for inflation
2. real is fixed for inflation
3.real because it gives a more accurate measure of the economy

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1.Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
2.Inflation is measured in a variety of ways depending upon the types of goods and services considered and is the opposite of deflation which indicates a general decline occurring in prices for goods and services when the inflation rate falls below 0%
3.Cost-push inflation is a result of the increase in the prices of production process inputs.Built-in inflation is the third cause that links to adaptive expectations. As the price of goods and services rises, labor expects and demands more costs/wages to maintain their cost of living.

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1.Frictional unemployment occurs as a result of people voluntarily changing jobs within an economy.

Cyclical unemployment is the variation in the number of unemployed workers over the course of economic upturns and downturns. Structural unemployment comes about through technological change in the structure of the economy in which labor markets operate. Structural unemployment is a form of involuntary unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers.
2.frictional-a person who left their job that is looking for a new one
cyclical-recession
structural-new tech
seasonal-mall santa
3.stay at home parents

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GDP stands for Gross Domestic Product

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GDP: gross domestic product
total value of final goods and services produced and measures the economy.

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Nominal GDP: is not fixed for inflation
Real GDP: is fixed for inflation
Real GDP is better because it gives a more accurate measurement of the economy.

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Inflation: is the general price level increasing over time
Inflation is measured by consumer price and price index.
Two causes of inflation: Demand-pull and Cost-push. Both are responsible for a general rise in prices in an economy.

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4 types of unemployment:
Frictional- in between jobs
Cyclical-  recession happens and people lose their jobs
Structural- You're replaced by new technology
Seasonal- jobs hiring during Christmas for extra help

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1. Gross Domestic Product
2. The total value of all final goods and services produced in a country in a year
3. C+I+G+(X-M)
C-Consumer
I- Investment
G- Gov
x- Exports
M- Imports
4. No they do not impact GDP because they are not counted.
5. Intermediate goods, previously used goods, purchases of stocks and bonds, social secuirty benefits.

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1. Nominal GDP in measured by the countrys output for that year, expressed in the value of the prices charged for that year.
2. Real GDP is adjusted for inflation
3. Real GDP is a better measure of ones economy bc it is more realictis and more specific.

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1. A quantitative measure of the rate at which the adverage price level of  basket of selected goods and services in an economy increasing over some period.
2. Final CPI index value/ Intial CPI index value
3. Demand pull effect when the demand is higher that the production value. Cost Push inflation increases in the cost of the input process.

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1. Frictional- in between jobs (moving, college, ect)
2. Structural- replaced with something better or faster usually technology.
3. Seasonal- only hires during certain seasons
4. Cyclical- Hires when the economy is good, fires when the economy is in a resecion.