Identification should include a definition
- gross domestic product (GDP)
- inflation
- unemployment
- productivity
- standard of living.
Identification should also include how each indicator is measured and used and how each characterizes each of the four phases of the business cycle.
Process/Skill Questions:
- What is the difference between GDP and gross national product (GNP)?
- What is the relationship between the business cycle and the measures of economic activity?
- What is the difference between inflation and deflation? How can each affect the consumer positively and negatively?
- How does unemployment affect the GDP and the economy?
- What impact does consumer spending or demand have on a nation’s GDP?
- What are some other economic indicators used to examine the health of an economy?
- What is the relationship between durable goods and standard of living?
- What is the impact of inflation and the consumer price index (CPI) on the health of an economy?