GDP is Gross!
Total dollar value at current prices of all final goods and services produced in a nation over a given period
What is Gross Domestic Product (GDP)?
A measure of price changes for a typical basket of consumer products?
What is the Consumer Price Index (CPI)?
Unemployment due to being temporarily between jobs or looking for a first job
What is frictional unemployment?
Products that will not be processed further and will not be resold - those included in GDP
What are final products?
This type of unemployment is the result of an economy in recession
What is cyclical unemployment.
Basic calculation for real GDP
What is Current year's output x Base year's price?
Nominal income - Inflation
What is real income?
When an individual no longer has the necessary skills for a job.
What is Structural Unemployment
A type of government purchase made to households or other levels of government not included in GDP
What is a transfer payment?
The value of GDP discounted by the rate of inflation
What is real GDP
C + I + G + (X-M)
What are consumption, investment, government spending, and net exports - What are the parts or components of GDP
A measure of price changes for a typical basket of consumer products?
What is GDP Deflator?
Underemployment and discouraged workers
What are areas not accounted for in the unemployment rate?
Purchases of goods and services from the rest of the world
What are imports? Net loss to GDP. Exports - Imports added to GDP (X-M)
A laid off bank teller who so far has not had success finding another job due to ATMs
What is an example of someone facing structural unemployment?
Ford's purchase of tires for their F-150 pick-up trucks for sale
What are intermediate goods - not counted in GDP.
The percent change in prices from year to year.
What is inflation rate?
Term for when machines take over a job.
What is Creative Destruction
The problem of workers being underutilized either as part-time workers or by working at jobs not appropriate to their skills or education
What is underemployment?
Expansion, Peak, Contraction, Recession, Trough
What are the phases of the business cycle.
Product quality, composition of output, income distribution, leisure and the environment
What are five limitations of GDP?
An employment rate of 5%
What is the natural rate of unemployment.
Represented in a trough on the business cycle.
What is Cyclical Unemployment?
Unemployment due to a mismatch between people and jobs
What is structural unemployment?
The value of all goods and services in a particular year
What is nominal GDP