GDP

• C + I + G + Xn

• What's included or not included in GDP

• Nominal GDP vs. Real GDP

• GDP Deflator = Nominal GDP / Real GDP * 100

Unemployment

• Frictional: Between jobs

• Structural: No longer have the skills

• Cyclical: Due to a recession

• Labor Force Participation Rate Calculation:
  Employed + Unemployed / Population 16 and older, not inst.

• Unemployment Rate Calculation:
  Unemployed / (Employed + Unemployed) * 100

Inflation

• CPI = Price of market basket in current year / Price of market basket in base year

• Helped vs. Hurt by Inflation

• % change in inflation rate between two years

Business Cycle

• Expansion = High Inflation

• Contraction = High Unemployment