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How is the unemployment rate calculated?
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Unemployment Rate = (Number of unemployed / Labor force) * 100
What are some items not included in GDP calculations?
Used goods, financial assets, illegal activities, and household production are not included in GDP calculations.
What is the impact of rapid inflation?
Rapid inflation is bad for purchasing power and loan accessibility.
Why is understanding economic indicators important?
Understanding economic indicators is essential for making informed decisions about personal finance and national economic policies.
What is the difference between nominal GDP and real GDP?
Real GDP is adjusted for inflation, while nominal GDP is not.
What does macroeconomics focus on?
Macroeconomics focuses on economic aggregates such as GDP, unemployment, inflation, interest rates, and government policies.
When did macroeconomics emerge as a field?
Macroeconomics emerged as a field during the Great Depression.
What are the three types of unemployment?
The three types of unemployment are frictional, structural, and cyclical.
How can the government boost the economy during a recession?
The government can boost the economy by increasing spending or cutting taxes.
What can deflation lead to?
Deflation can lead to reduced spending, lower GDP, and higher unemployment.
What are the four components of GDP?
The four components of GDP are consumer spending, business spending (investment), government spending, and net exports.
What are the main tools macroeconomics uses to provide predictions?
Macroeconomics uses data, theoretical models, and historical trends to provide predictions.
How is Gross Domestic Product (GDP) defined?
GDP is the value of all final goods and services produced within a country in a specific period.
What are the three main economic goals of macroeconomics?
The three main economic goals are economic growth, limited unemployment, and stable prices.
What does the natural rate of unemployment include?
The natural rate of unemployment includes only structural and frictional unemployment.
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