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United StatesEconomics

Unit 2: Economic Indicators and the Business Cycle

7 dot points across 7 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How does an economy move through expansions and recessions, and how do output gaps relate to unemployment and inflation?

Who is helped and who is harmed by inflation, and why does anticipated inflation matter less than unanticipated inflation?

What does GDP fail to capture, and why is it an imperfect measure of a nation's well-being?

How do we measure the price level and the rate of inflation, and what causes it?

How do we separate genuine changes in output from changes in prices when measuring GDP over time?

How does money and output flow through an economy, and how do we measure the total value of what it produces?

How is unemployment measured, what types exist, and what does full employment mean?