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Unit 2: Economic Indicators and the Business Cycle

AP Macroeconomics — Note Packet

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Key Terms

Gross Domestic Product (GDP)

Total market value of all ______ goods and services produced within a country's borders in a specific time period.

Intermediate Goods

Goods used in the production of other goods; they are ______ from GDP calculation to avoid double-counting.

Non-production Transactions

Transactions like used goods, financial transactions, and ______ payments that are excluded from GDP.

Labor Force

Individuals 16 years or older, non-institutionalized, and either ______ or actively seeking employment.

Discouraged Workers

Individuals who want a job but have given up looking; they are ______ counted as unemployed or in the labor force.

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