Topic: Markets
Q: What are markets in economics? A: Markets refer to the interaction between
buyers and sellers of goods, services, or resources. It is a mechanism through
which individuals and businesses exchange goods and services, enabling the
allocation of resources and determination of prices.
Topic: GDP (Gross Domestic Product)
Q: What is GDP? A: GDP is a measure of the total value of all final goods and
services produced within a country's borders during a specific period, typically a
year. It provides an overview of a country's economic activity and is used as an
indicator of economic growth and overall economic health.
Topic: GDP Growth
Q: What does GDP growth represent? A: GDP growth refers to the percentage
change in a country's GDP from one period to another. It reflects the rate at
which an economy is expanding or contracting. Positive GDP growth indicates
economic expansion, while negative growth indicates a contraction or recession.
Topic: Business Cycle
Q: What is the business cycle? A: The business cycle refers to the fluctuation in
economic activity that occurs over time. It consists of alternating periods of
expansion (economic growth) and contraction (recession). These cycles are
characterized by changes in GDP, employment levels, investment, and other
economic indicators.
Topic: GDP Deflator
Q: What is the GDP deflator? A: The GDP deflator is a measure that compares
the nominal GDP (current prices) of a specific year to the real GDP (constant
prices) of the base year. It is used to adjust GDP for inflation and calculate the
real economic growth rate.
Topic: CPI (Consumer Price Index)
Q: What is the CPI? A: The CPI is a measure that tracks changes in the average
prices of a basket of goods and services purchased by households over time. It is
used to estimate the rate of inflation and reflect changes in the cost of living for
consumers.
Topic: Unemployment Q: What is unemployment in economics? A:
Unemployment refers to the state of individuals who are actively seeking
employment but are currently without a job. It is an important economic
indicator that measures the percentage of the labor force that is jobless and
actively looking for work. Unemployment rate fluctuations impact consumer
spending, government policies, and overall economic stability.
Markets: Interaction
between buyers and
sellers for exchanging
goods and services.
GDP: Total value of all
goods and services
produced in a country.
GDP Growth: Percentage
change in GDP indicating
economic expansion or
contraction.
Business Cycle:
Fluctuation in economic
activity consisting of
expansion and contraction
phases.
GDP Deflator: Adjusts
GDP for inflation and
calculates real economic
growth.
CPI: Measures changes in
average prices of goods
and services, estimating
inflation.
Unemployment:
Percentage of jobless
individuals actively
seeking employment.