Chapter+12

12.1 #1-5
 * 1) Intermediate goods are used in the production of final goods while final goods are the final forms of products sold to consumers.
 * 2) GPD is the dollar value of all final goods and services produced within a countries border while GNP is the annual income earned by United States owned firms and US citizens.
 * 3) Nominal GPD shows the current years output while real GPD lets us see how much goods are being produced.
 * 4) Nonmarket activities, negative externalities and quality of life are only some of the economic activities not included in GDP
 * 5) If the aggregate demand goes up then the real GDP and price level will rise in turn.

MARCH 1, 2011 //** 1. Describe frictional, seasonal, structural, and cyclical unemployment. **// //** 2. Describe how full employment is measured. **// //** 3. Explain why full employment does not mean that every worker is employed. **//


 * 1) Frictional unemployment is when people take time to find a job such as when they get recently fired or laid off. Seasonal is when an industry slow or shut down for a season or make seasonal shifts in their production schedules. structural occurs when workers skills do not match the jobs that are available. Cyclical is during recessions or down tunes in the business cycle.
 * 2) Full employment is measured with graphs and using formulas to see how employment is going.
 * 3) Full employment only means that nearly everyone who wants a job has a job but some arent happy with their jobs and are under-employed.