Economic Measurement
Gross domestic product (GDP), inflation, interest rates, unemployment rate, and the stock and bond markets.
Economic indicators
The rate of change in prices calculated on a monthly or yearly basis.
Inflation rate
low, moderate, severe, and hyperinflation.
Levels of inflation
consumers, businesses, and government agencies
Borrowers
All of the people in a nation who are capable of working and want to work. It does not include children, individuals who are retired, or people who choose not to work.
labor force
The market value of all final products produced in a country during a specific time period.
GDP(Gross Domestic Product)
Inflation tends to increase during periods of
economic expansion.
Extremely rapid, out-of-control rise in inflation where a country’s currency is severely devalued.
hyperinflation
banks, finance companies, and investors
Lenders
includes everyone who is working.
Employed
Economic Output
GDP
The is the most widely used indicator of inflation.
Consumer price index
General decline in prices throughout an economy.
Deflation
The cost of a loan and is expressed as a percent of the amount borrowed.
interest rate
Includes those who do not have a job but are actively looking for one.
Unemployed
Consumer spending, business investment, government spending, and net exports,
Four components of GDP
A measure of the average change in the prices paid by consumers for typical consumer goods and services over time.
Consumer price index (CPI)
Expansion, peak, recession, and trough.
four stages of the business cycle:
The amount a borrower pays to a lender for a loan.
Interest
A measure of a worker’s production in a specific amount of time, such as an hour, a day, or a week.
Productivity
The GDP of a nation divided by its population. It shows the amount of economic output for each person in the country.
Per Capita GDP
The general rise in prices throughout an economy. The most significant effect of it is that it reduces the purchasing power of money.
Inflation
Period when the economy is growing and the GDP is rising. It usually begins with an increase in consumer demand for goods and services.
Economic expansion
Home mortgages, auto loans, student loans, business loans
Types of Loans
A system and marketplace for buying and selling stocks.
stock market