Economics Ch 12, Gross Domestic Product and Growth

1. components GDP + + + = ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ description Yr 1 Nominal GDP Yr 2 Nominal GDP Yr 2 Real GDP 10 cars @ $15,000 = $__________ 10 trucks @ $20,000 = $__________ Total $__________ 10 cars @ $16,000 = $__________ 10 trucks @ $21,000 = $__________ Total $__________ 10 cars @ $_______ = $__________ 10 trucks @ $______ = $__________ Total $__________ Name ____________________ Class Period ______ Date __________ Economics Ch 12, Gross Domestic Product and Growth National income accounting Gross domestic product Intermediate goods Durable goods Nondurable goods Nominal GDP Real GDP Depreciation Price level Aggregate supply Aggregate demand Business cycle Expansion Contraction Peak Trough Recession Depression Stagflation Leading indicators Economic growth Real GDP per capita Saving Savings rate Technological progress Key Terms Calculating GDP Expenditure Approach Nominal and Real GDP

2. Economics Ch 12, Gross Domestic Product and Growth Eqquilibrium Aggregate Supply and Demand Label each axis Draw & label an aggregate supply curve (AS). Draw & label an aggregate demand curve (AD1). Indicate the equilibrium price level and quantity (P1 & Q1) Draw & label an aggregate demand curve (AD2), illustrating an increase in aggregate demand. Indicate the equilibrium price level and quantity (P2 & Q2) . Tracking a Business Cycle Label each axis. Draw a business cycle curve. Label the 4 phases of the business cycle. What Keeps a Business Cycle Going? Variable Effect of Variable