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30 Cards in this Set

  • Front
  • Back
National income and product accounts
-measure of aggregate output on national levels.
-they firstdefine concepts and then construct measures those concepts. Helps in understanding flow of an entire economy
the word macroeconomists use for total
Gross Domestic Product: the measure of aggregate output in the national accounts.
1.Aggregate production side, or
2.Aggregate income side. 1=2 ($)
Intermediate good
a good used in the production of another good.
in GDP, we want to count only the production of final goods, not intermediate goods
Value added
the value added by a firm.
-value of production minus value of intermediate goods.
Nominal GDP
Sum of the quantities of final goods produced times their current price.
1.increases over time:production
2.prices increase over time
Real GDP
to measure production and its changes over time, we need to eliminate the effect of increasing prices (inflation) on
Dollar GDP ($Y)
Nominal GDP, GDP in current dollars
GDP in terms of goods
Real GDP, GDP in constant dollars, GDP adjusted for inflation, GDP in "year" dollars
real GDP per capita
ratio of real GDP to the population of the country
='s standard of living of the country
GDP growth
rate of growth of real GDP
period of positive GDP growth
period of negative GDP growth
Labor Force
sum of employment and unemployment
# of people who have a job
# of people who do hot have a job but are looking for one (for the last four weeks)
Unemployment rate
ratio of the # of people who are unemployed to the number of people in the labor force. unemploymetn/labor force
Current Population Survey: interviews 60,000 households every month. checks for employment
Not in the labor force
those who do not have a job and are not looking for one
Discouraged workers
some of the unemployed give up looking for a job and therefore are no longer counted as unemployed
Participation rate
ratio of the labor force to the total poplulation of working age
Hedonic(greek "pleasure")pricing
implicit price on each of a good's characteristics. this is done to the rapid change in price of certian items. ie: computers, cars
Underground economy
the part of economic activities not measured in official statistics- activities are illegal.
sustained rise in the general level of prices(price level) in the economy
Price level
general level of prices
Inflation rate
rate at which the price level increases
sustained decline in the price level
GDP Deflator
if we see nominal GDP increase faster than real GDP, the difference must come from an increase in prices.
Nominal GDP($Y)/Real GDP(Y)
Index #
the GDP deflator