Chapter 22: Measures of Economic Performance

1. 1. What is the difference between microeconomics and macroeconomics? 

Microeconomics is the study of individual markets within an economy while macroeconomics is the study of the economy as a whole. 

1. 2. What is GDP and how is it used? 

Gross domestic product is a measure of output that is used to compare with other countries and over time. 

1. 3. What does a 5% increase in GDP in 1 year mean? 

It means that the output of the economy has increased by 5% over a 12-month period 

1. 4. What is a "depression"/"recession"…