What are the key terms used to describe the U.S. economic system?
Gross domestic product (GDP) is the total value of final goods and services produced in a country in a given year. The unemployment rate refers to the number of civilians at least 16 years old who are unemployed and who tried to find a job within the most recent four weeks. The consumer price index (CPI) measures changes in the prices of about 400 goods and services that consumers buy. It contains monthly statistics that measure the pace of inflation (consumer prices going up) or deflation (consumer prices going down). Recently, the government created a new index called the chained consumer price index (C-CPI) because the CPI failed to take into account the fact that consumers would shift their purchases as prices went up or down. Productivity is the total volume of goods and services one worker can produce in a given period. Productivity in the United States has increased due to the use of machinery and other technology. • What are the four phases of business cycles? In an economic bo
