Key Takeaways
Lesson Description
Key Takeaways
• GDP measures the total market value of final goods and services produced within a country.
• Inflation measures the overall increase in prices over time.
• Unemployment measures the percentage of the labor force without jobs.
• The business cycle consists of expansion, peak, contraction, and trough.
• Economic growth improves long-run living standards.
Must Know Equations
GDP = C + I + G + (X − M)
Inflation Rate = [(Current CPI − Previous CPI) / Previous CPI] × 100%
Unemployment Rate = (Unemployed ÷ Labor Force) × 100%
Must Know Vocabulary
Gross Domestic Product (GDP)
Nominal GDP
Real GDP
Consumer Price Index (CPI)
Inflation
Deflation
Unemployment
Labor Force
Business Cycle
Recession
AP Exam Focus
• Calculate GDP.
• Distinguish Nominal and Real GDP.
• Interpret unemployment and inflation data.