Standard: b. Define Gross Domestic Product (GDP), economic growth, unemployment, Consumer Price Index (CPI), inflation, stagflation, and aggregate supply and aggregate demand. Essential Question: How is the Consumer Price Index Calculated? Who does it hurt? Who does it help? Warm up: What is it called when inflation is over 10% annually? Draw an AS/AD curve that shows Cost Push Inflation.

 GDP=C+G+I+NX  Total dollar value of all FINAL goods and services produced within a country in a given year  Nominal vs Real GDP

 Expansion  Peak  Contraction (Recession/ Depression)  Trough

 Shifters of AD  GDP=C+G+I+NX  Shifters of AS  Productivity  Input costs  Change in labor force  Taxes/Regulations  What does Real GDP and Price Levels do?

 Types of unemployment  -Cyclical-Business cycle  -Structural-Skills  -Frictional  Labor force=employed+unemployed  Not in the labor force  Unemployment rate=unemployed/labor force

 Inflation-general rise in prices  When inflation occurs purchasing power decreases  Demand Pull Inflation  Stagflation/Cost Push Inflation  Hyperinflation  Hurt vs. Helped

 CPI  % change formula