Worker training contract provision

What are the main components of measuring GDP with what is

produced ? The goods, the durable goods, non durable goods,

services, structures and the change in invetories

Why must double counting be avoided when measuring GDP?

Yes, because output is counted more than once as it travels through

the stages of production

Why does “substitution bias” arise if the inflation rate is

calculated based on a fixed basket of goods? From base year till

now consumers will spend more in some goods than they did on the

base.

What is deflation ? a contraction in the supply of circulated money

within an economy. What is indexing ? adjusting de terms of a

long-term contract to account for the effects of inflation.

What is the difference between being unemployed and being out

of the labor force?  Unemployed is when a person is willing but

unable to find a work. A labor force is when a person is not willing or

not looking for work. What forces create the natural rate of

unemployment for an economy? increase labour market flexibility,

trade unions less powerful. Have create new types of job. Increase the

competitiviness of industry leading to more flexible labour markets.

What is frictional unemployment? Give examples of frictional

unemployment. is when workers leave their jobs to find better ones.

examples: mothers who rejoin the workforce after raised children.

construction worker to move arizona in winter