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23 Cards in this Set
- Front
- Back
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The Three Market Arenas
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1)Output/Commodity
2)Labor 3)Money |
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GDP
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Gross Domestic Product= Value of output produced within a countries boarders.
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Types of GDP
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1) Nominal GDP
2)Real GDP |
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Nominal GDP
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Measures the value of the output of a given period at the PRICE OF THE SAME PERIOD.
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Two schemes in calculating Real GDP.
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1)Fixed Scheme
2) Chained Scheme |
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Calculating Real GDP
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Base year prices are ignored.
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Percentage Change Formula
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( The difference of the value of X in 2 periods/ Value of X in the 1st period)
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Recession
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two
consecutive quarters of declines in the real GDP. |
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GNP
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Gross National Product=
Total output created by a nation's permanent residents. |
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NDP
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Net Domestic Product=
Capital goods used by firms that can be depreciated. |
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GDP excludes..
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Resale of used commodities.
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CPI
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Consumer Price Index
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Deflation
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Negative changes in prices
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Labor Force includes..
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Employed + Unemployed
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4 types of Unemployment
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1)Structural
2)Frictional 3)Cyclical 4)Seasonal |
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Total Unemployment Rate
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# of unemployed/
# in the Labor Force * 100 |
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Structural Unemployment
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Individual's skills are no longer in demand due to structural change in the economy.
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Frictional Unemployment
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A person is unemployed for a short time because of the normal workings of the labor market.
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Cyclical Unemployment
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Unemployment due to overall recession in the economy.
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Seasonal Unemployment
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Lost job because seasonal ups and downs of the job.
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Included in Natural Rate of Unemployment
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Frictional + Structural
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Included in Total Rate Of Unemployment
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Frictional+Structural+Cyclical
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Inflation
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% Change in the CPI from one year to the next.
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