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24 Cards in this Set
- Front
- Back
Circular Flow |
the continuing and recurrent transfers of money and goods among producers and consumers
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Gross Domestic Product (GDP) |
the total value of the goods and services produced by the people of a nation during a year not including the value of income earned in foreign countries
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Final Goods |
a good or service that is consumed by the end user and does not require any further processing
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Intermediate Goods |
material or item that is a final-product of a process, but is also used as an input in the production process of some other good
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Durable Goods |
mass market heavy goods (such as washing machines, refrigerators, furniture) intended to last three or more years |
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Real GDP
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an economic assessment that involves quantifying the inflation adjusted market value of goods and services produced by an economic system during a given time
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Nominal GDP
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the determination of actual gross domestic product without taking into account other factors or variables such as inflation
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Unemployment Rate
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percentage of total workforce who are unemployed and are looking for a paid job
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Discouraged Worker
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person who available for a job but is not currently looking for one
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Labor Force
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number of individuals in an economy who either are employed or are seeking employment
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Labor Force Participation Rate |
percentage of total population that either is employed or is seeking employment |
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Natural Rate of Unemployment |
level of unemployment at which the inflation rate in an economy stays stable and, if the unemployment falls due to an expanding economy, the inflation rate starts to accelerate |
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Frictional Unemployment
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temporary unemployment arising out of the inevitable time lags in the functioning of labor markets, such as the time taken in moving from one job to another |
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Structural Unemployment
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joblessness caused not by lack of demand, but by changes in demand patterns or obsolescence of technology, and requiring retraining of workers and large investment in new capital equipment |
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Cyclical Unemployment
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workers losing their jobs due to business cycle fluctuations in output |
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Inflation
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a sustained, rapid increase in prices, as measured by some broad index (such as Consumer Price Index) over months or years, and mirrored in the correspondingly decreasing purchasing power of the currency |
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Deflation
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reduction of the general level of prices in an economy |
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Real Income vs Nominal Income
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real income is the income expressed in terms of the goods or services it can purchase, where nominal income is the amount of currency earned |
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Real Wages vs Nominal Wages
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real wages are wages that have been adjusted for inflation, where nominal wages are the currency amount earned for one's labor |
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Real Interest Rates vs Nominal Interest Rates
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real interest rates are the rates of interest an investor expects to receive after allowing for inflation, where nominal interest rates are the rates of interest that is reported on loan documents and investment accounts that are not adjusted for inflation |
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Consumer Price Index (CPI)
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measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care |
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Producer Price Index (PPI)
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family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time |
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GDP Deflator |
price index that measures inflation or deflation in an economy by calculating a ratio of nominal GDP to real GDP
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Mr. Gannon |
greatest teacher of all time (GTAT) |