Economics Worksheet: Measuring the Economy

Write the word or phrase next to its definition

Peak Contraction Inflation
Trough Recession Depression
Trade Deficit Franchise Unlimited Liability
Expansion or Recovery National Debt Deflation

_____________________ 1. A period when business activity begins to speed up in the business cycle.

_____________________ 2. A period when business activity begins to slow down in the business cycle.

_____________________ 3. A period of at least 6 months during which the Real GDP does not grow.

_____________________ 4. A period of prosperity in the business cycle.

_____________________ 5. The lowest point of the business cycle, occurs when the Real GDP stops going down.

_____________________ 6. When there is a general decrease in the price of goods and service, over time.

_____________________ 7. This is the amount of money that the Federal Government has borrowed.

_____________________ 8. When there is a general rise in the price of goods and services, over time.

_____________________ 9. When the dollar amount of goods imported exceeds the dollar amount of those exports.

_____________________ 10. Millions are out of work, businesses fail, and the economy operates far below capacity.
Short Answer
11. What does GDP stand for and what does it measure? _____________________________________
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12. What does CPI stand for and what does it measure? ______________________________________
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13. What is the difference between the GDP and the Real GDP? _______________________________
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14. In the chart below, list economic indicators and what they tell us about the economy.
Indicator What it tells us about our economy

15. Explain “Standard of Living” and how we can determine whether it is getting better or worse.
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16. Explain “Per Capita” GDP ___________________________________________________________
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Economics 12/12/14
Graphing

Economics 12/12/14
In the space below draw and label all parts of the model of the business cycle.