GDP & Economic Indicators Word Search
Find 10 essential GDP and economic indicator terms. Click any word to understand how economists measure growth, inflation, and the health of the US economy.
Economics Term
Find 10 essential GDP and economic indicator terms. Click any word to understand how economists measure growth, inflation, and the health of the US economy.
Study these terms before or after solving the puzzle. Each definition includes a real-world US example.
Gross Domestic Product is the total monetary value of all goods and services produced within a country in a specific period. It is the broadest measure of economic activity and the primary indicator of a nation's economic health.
The US GDP was approximately $27 trillion in 2023. When US GDP grew 3.1% in Q3 2023, it signaled a resilient economy despite high interest rates.
Inflation is the rate at which the general level of prices rises over time. Central banks target around 2% annual inflation as healthy for the economy.
US inflation peaked at 9.1% in June 2022. The Fed responded with 11 consecutive rate hikes, bringing inflation down to around 3% by late 2023.
The unemployment rate measures the percentage of the labor force actively seeking work but unable to find it. Economists consider 4-5% to be full employment.
US unemployment fell to 3.4% in January 2023 — its lowest level since 1969 — creating a very tight labor market.
The Consumer Price Index measures the average change in prices paid by urban consumers for a representative basket of goods and services. It is the most widely used measure of inflation in the US.
The June 2022 CPI reading of 9.1% was the highest since 1981. Core CPI (excluding food and energy) is watched most closely by the Fed.
Economic output refers to the total quantity of goods and services produced by an economy. When output grows, jobs are created; when output falls, unemployment typically increases.
US manufacturing output fell 15% in April 2020 — the largest monthly decline since records began — as COVID-19 shutdowns halted production.
Economic growth refers to an increase in a country's production of goods and services over time, measured as the annual percentage change in GDP. Most developed economies target 2-3% annual growth.
The US economy grew 5.8% in 2021 — the fastest rate since 1984 — driven by massive COVID-19 stimulus and economic reopening.
Economic indicators are statistics used to measure the health of an economy. Leading indicators predict future activity; lagging indicators confirm past trends; coincident indicators move with the economy in real time.
The Conference Board's Leading Economic Index fell for 24 consecutive months through 2022-2023, a historically reliable signal of recession risk.
International trade is the exchange of goods and services between countries. The trade balance — exports minus imports — is a key component of GDP. A deficit is subtracted from GDP; a surplus adds to it.
The US goods trade deficit hit a record $1.19 trillion in 2022 as strong consumer demand pulled in imports while export growth lagged.
Fiscal policy refers to government use of spending and taxation to influence the economy. Expansionary fiscal policy stimulates growth; contractionary policy slows the economy to control inflation.
The $2.2 trillion CARES Act of March 2020 was massive expansionary fiscal policy — direct payments, expanded unemployment, and business loans to prevent economic collapse.
A recession is officially defined as two consecutive quarters of negative GDP growth. Recessions are characterized by falling output, rising unemployment, and reduced consumer spending.
The COVID-19 recession of 2020 was the shortest on record — just two months — but also the sharpest, with GDP falling 31.4% annualized in Q2 2020.