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Ch 5: Economic Factors

About This Chapter

Boost your comprehension of different economic factors with help from bite-sized lessons in this entertaining chapter. If you're studying for a test, gauge your readiness to answer questions by taking our multiple-choice quizzes and practice exam.

Economic Factors - Chapter Summary

In this chapter are fun lessons you can study at your convenience to improve your knowledge of the business cycle, GNP, gross domestic product, economy models and much more. Top instructors with a wealth of knowledge about economic factors have developed all of our lessons. By completing this chapter, you can prepare to do the following:

  • Define and explain the importance of financial statements
  • List and describe business cycle indicators for economic activity
  • Share and use the formula for the inflation rate
  • Differentiate between cyclical stocks and defensive stocks
  • Compare and contrast value stocks and growth stocks
  • Provide the definition of monetarism
  • Discuss the balance of payments with financial accounts
  • Explain the impact of currency appreciation and depreciation

Feel free to use this chapter as a study guide for the portion of your exam covering economic factors. Review any lessons you feel can strengthen your existing knowledge, and clarify concepts you don't fully grasp by sending questions to our subject-matter experts. Use our short quizzes and practice test to check your comprehension of lesson concepts and become familiar with the types of questions you will see on the exam. If you need to study while out and about, be sure to access our chapter materials using your tablet or smartphone.

13 Lessons in Chapter 5: Economic Factors
Test your knowledge with a 30-question chapter practice test
What Are Financial Statements? - Definition, Purpose & Importance

1. What Are Financial Statements? - Definition, Purpose & Importance

Financial statements are big players in the world of accounting. In this lesson, you will be introduced to each of the financial statements. You will also learn what their role is in the accounting industry, who they are important to and why they are important.

The Business Cycle: Economic Performance Over Time

2. The Business Cycle: Economic Performance Over Time

Learn the economic terms that describe economic performance over time and how indicators such as unemployment and inflation behave throughout these economic fluctuations.

Business Cycle Indicators for Economic Activity

3. Business Cycle Indicators for Economic Activity

This lesson discusses time-sensitive economic indicators, including leading, coincident, and lagging indicators. Each gives us a different, yet interesting, view of the economy. Review examples of each to learn more, then take a brief quiz.

What Is Inflation Rate? - Definition & Formula

4. What Is Inflation Rate? - Definition & Formula

Have you ever heard about inflation on the news? Ever wonder how inflation is calculated? In this lesson, you'll learn what the inflation rate is and how to calculate it. You'll also have a chance to take a short quiz.

What are Cyclical Stocks? - Definition & Examples

5. What are Cyclical Stocks? - Definition & Examples

This lesson goes over cyclical stocks whose prices change in sync with that of larger economic cycles. We'll go over a few examples and discuss their importance in a portfolio.

What are Defensive Stocks? - Definition & Examples

6. What are Defensive Stocks? - Definition & Examples

In this lesson, we go over the topic of defensive stocks. You'll learn what they are, how you can spot them by looking at some key examples, and why they're important in an investment portfolio.

Value Stocks vs. Growth Stocks: Definitions, Differences & Examples

7. Value Stocks vs. Growth Stocks: Definitions, Differences & Examples

This lesson compares and contrasts value stocks vs. growth stocks. You'll learn what they are, their qualities, and when they tend to perform better or worse with respect to the general economy.

Economy Models: Classical Vs Keynesian

8. Economy Models: Classical Vs Keynesian

In this lesson, we explore two important models that economists use to decipher capitalist economies and discuss when each is best used to describe the economy.

Monetarism: Definition & Overview

9. Monetarism: Definition & Overview

Economists are like most people: they don't always agree on how things work or should work. Monetarism is one of several schools of thought in economics. In this lesson, you'll learn about monetarism and its policy approach. A short quiz follows.

Balance of Payments with Financial Accounts: Measuring Foreign Trade

10. Balance of Payments with Financial Accounts: Measuring Foreign Trade

Learn about the balance of payments and the two key components that make it up. Discover what the financial/capital account is and how it relates to foreign trade and surpluses and deficits.

Gross Domestic Product: Definition and Components

11. Gross Domestic Product: Definition and Components

Learn how economists measure the total production of an economy using gross domestic product (GDP). This lesson also outlines the components that make up a GDP. How do we calculate the economic value of a nation?

GNP: Definition & Formula

12. GNP: Definition & Formula

This lesson explores the economic concept known as gross national product, or GNP. We'll discuss the formula for calculating GNP as well as the differences between GNP and the better-known GDP.

Currency Appreciation & Depreciation: Effects of Exchange Rate Changes

13. Currency Appreciation & Depreciation: Effects of Exchange Rate Changes

Find out how changes in the exchange rate can affect the economy and your own individual situation. Discover how these currency changes can increase and decrease your purchasing power and standard of living.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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