3'03Explain economic measurements and the business economic cycle

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3.03 Explain economic measurements and the
business (economic) cycle
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Labor Productivity

• The amount produced per worker measured during a
  specific time period
• Example Packing computers

3
Gross Domestic Product (GDP)

• A measure of the goods and services produced IN a
  country.

4
Gross national product (GNP)

• The sum of the dollar value for products produced
  BY a country
• Example Briggs and Stratton

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Standard of Living

• Amount of goods and services available
• Example United States vs. Ethiopia

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Inflation Rate

• The rate at which prices are rising
• Stable rate- 1-5 inflation rate per year
• Interest rates- the government tries to
  discourage borrowing money by raising interest
  rates

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Unemployment Rate

• Total number of people willing/able to work
• Number of unemployed workers

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Business Cycle

• Expansion- highest period of economic growth
• Recession- economic slowdown
• Depression- prolonged recession
• Recovery- renewed economic growth