ECONOMICS: Chapter 13 Review Questions – Measuring the Economy’s Performance
											Name______________________
13.1: National Income Accounting							Date_______________ Hour____

1.	 What can economists use to measure economy's performance? 

2. This is the total dollar value of all the nation’s final goods and services produced over the course of a year.

3.	 How do you find Net Domestic Product (NDP)? What should replace “CCA” in the graph below?
   (see Figure 13.1, p. 336)

4. 	How do you find Disposable Personal Income? (see Figure 13.1, p. 336)

5. 	Name the four categories used to compute GDP.

6. 	This is the measurement of the national economy’s overall performance.

7. 	This is the loss of value because of wear and tear to goods.

8. 	The total income earned by everyone in the economy.

9. 	What are transfer payments? Give examples.

13.2: Correcting Statistics for Inflation

10.	 What does the producer price index measure?

11.	 What happens to your purchasing power when inflation occurs?

12. 	How do we compute real GDP?

13. Using your explanation of real GDP, what do you think real wages refers to?
 
14. 	This is the measure of the change in price over time that U.S. producers charge for their goods and services.

15. 	What is CPI?

16. 	This is a prolonged decline in the general price levels of goods and services.

13.3: Aggregate Demand & Supply

17.	 The total of all planned expenditures in the entire economy.

18. List several events that could cause the graph below to shift to the left or right. 

19. This is the summation of all the individual parts in the economy.

13.4: Business Fluctuations

20. 	Label the letters in the business cycle below and explain what happens during each.

21. 	Review the history of the business cycle in the U.S. and list significant events.

22. 	This is a period during which the real GDP declines for at least six months.

23. 	This is a major slowdown of economic activity.

13.5: Causes & Indicators of Business Fluctuations

24.	 Usable inventions and new production techniques are known as this.

25. 	Explain the economic indicators and list examples of each.

	Leading

Coincident 
			
	Lagging	

26. 	What are economic indicators used for?

27. 	What does the rise or fall of coincident indicators indicate?