1. 3.03Explain economic measurements and the business (economic) cycle

2. Labor Productivity The amount produced per worker measured during a specific time period The amount produced per worker measured during a specific time period Example: Packing computers Example: Packing computers

3. Gross Domestic Product (GDP) A measure of the goods and services produced IN a country. A measure of the goods and services produced IN a country.

4. Gross national product (GNP) The sum of the dollar value for products produced BY a country The sum of the dollar value for products produced BY a country Example: Briggs and Stratton Example: Briggs and Stratton

5. Standard of Living Amount of goods and services available Amount of goods and services available Example: United States vs. Ethiopia Example: United States vs. Ethiopia

6. Inflation Rate The rate at which prices are rising The rate at which prices are rising Stable rate- 1-5% inflation rate per year Stable rate- 1-5% inflation rate per year Interest rates- the government tries to discourage borrowing money by raising interest rates Interest rates- the government tries to discourage borrowing money by raising interest rates

7. Unemployment Rate Total number of people willing/able to work Number of unemployed workers

8. Business Cycle Expansion- highest period of economic growth Expansion- highest period of economic growth Recession- economic slowdown Recession- economic slowdown Depression- prolonged recession Depression- prolonged recession Recovery- renewed economic growth Recovery- renewed economic growth