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36 Cards in this Set
- Front
- Back
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GDP
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the total dollar value of all final goods and services within a country in a given time period
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Nominal GDP
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value of goods/services in CURRENT year prices and CURRENT year quantities
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real GDP
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value of goods/services in BASE year price and CURRENT quantities
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growth rate
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rate at which REAL GDP has changed over time
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real GDP per capita
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real GDP/population (measures income)(real GDP has to rise faster than population for GDP per capita to rise)
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labor statistics
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include civilians 16+ not in jail, hospital, military, or institutional care
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discouraged workers
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able to work but not willing
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unemployment rate
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unemployed/labor force x 100 (# of civilians active in market that are unemployed)
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labor force
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employed+unemployed (but looking)
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CPI
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goods/services that urban households purchase, prices vary but quantities stay constant
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computing CPI
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1=base year, TE1=P1xQ1, TE2=P2xQ1, PL=TE1/TE1x100, PL2=TE2/TE1x100, PL2-PL1/PL1x100=inflation rate
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hyperinflation
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rates of 50%+ per month
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current account
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exports-imports (with other shit)
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federal budget
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revenues-expenditures
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fiscal policy
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taxes, transfer payments, spending on goods/services
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aggregate expenditures
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total dollar amount buyers spend on goods/services
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aggregate income
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total income firms earn from producing and selling goods/services
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net private domestic investment
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new capital after replacing what was worn out (gross-depreciation=net)
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GDP deflator
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nominal GDP/real GDP x 100 (quantities and prices vary over time)
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economic welfare
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measure of the general state of economic well-being. when the production of goods/services rises, economic welfare does also
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employment to population ratio
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employed/working age population x 100 (% of civilian working age population employed)
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labor force participation rate
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labor force/working age population x 100 (# of civilian working age population active in labor market)
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seasonal unemployment
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unemployment from seasonal patters of work
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cyclical unemployment
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unemployment from movement over business cycle
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structural unemployment
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unemployment from mismatch between skills (training) and location (relocating) of job seekers and jobs (longer time period)
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frictional unemployment
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unemployment experienced by people in-between jobs or entering job market (shorter time period)
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natural rate of unemployment
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rate at which there is only frictional and structural unemployment
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full employment
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occurs when unemployment rate=natural rate
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CPI biases
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outlet substitution=not accounting for changing locations when prices rise (more discount stores)
commodity substitution=not accounting for quantity changes when relative price changes (items purchased are mixed) quality change=improvements in quality leads to higher costs and prices (price increase is seen as inflation) new goods-new goods today are more expensive than similar goods years ago |
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wealth
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the value of items people own
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disposable income
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aggregate income-(taxes+transfer payments)
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potential GDP
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when all the economy's labor, capital, land, and entrepreneurship are fully employed
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lucas wedge
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the accumulated loss of output that results from a slowdown in the growth rate of real GDP per person
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Okun gap
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real GDP-potential GDP
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deficit
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spending more than one collects
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monetary policy
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interest rates and amount of money in economy
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