Measures to Improve the Standard of Living

Topics: Inflation, Unemployment, Macroeconomics Pages: 3 (980 words) Published: December 4, 2012
Economic growth is best defined as either real GDP or real GDP per capita Real GDP per capita is found by dividing real GDP by population Which of the following best measures improvements in the standard of living of a nation? Growth of real GDP per capita If a nation real GDP increases from 100bill to 106bill and its population jumpts from 200mill to 212mill, real GDP per capita will remain constant For comparing changes in potential military strength and political preminence, the most meaningful measure of economic growth would be: changes in total real output Given the annual rate of economic growth, the rule of 70 allows me to calculate the number of years required for real GDP to double the number of years required for real GDP to double can be found by dividing 70 by the annual growth rate at an annual growth rate of 4 percent, the real GDP will double in about 17.5yrs at an annual rate of 7 percent, real GDP will double in about 10yrs recurring upswings and downswings in an economys real GDP over time is called business cycles in the US, business cycles have occurred against a backdrop of a long run trend of rising real GDP the immediate determinant of the volume of output and employment is the composition of consumer spending during a severe recession, we would expect output to fall most in the construction industry the phase of the business cycle in which real GDP declines is called a recession market economies have been characterized by occasional instability of employment and price levels the production of durable goods varies more than the production of nondurable goods because durable purchases are postponable in which phase of the business cycle will the economy most likely experience rising real output and failing unemployment rates? Expansion in the US, the rate of unemployment is highest for African American teenagers to be officially unemployed, aperson must be in the labor force the natural rate of unemployment is that rate of unemployment...
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