GDP is Gross!
Total dollar value at current prices of all final goods and services produced in an economy 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?
A method of calculated Gross Domestic Product by adding together all incomes in the economy
What is the income approach?
The number of things that your income can buy
What is real income / Purchasing power?
Farm workers waitng for a job when crops are ready for the harvest
What is seasonal unemployment?
The government making payments to households or firms not included in GDP
What is a transfer payment?
GDP = C + I + G + (X-M)
What is the expenditure approach calculation?
Effect on price level if the government increases taxes.
Decreases
A full-time PHD University student has no job and is not willing to work
Working Age population but Not in labor force
Canadian purchases of goods and services from the rest of the world
What are imports?
All the market transactions that go unreported
What is the underground economy?
The other way of measuring price level that is not CPI or PPI
What is the GDP deflator?
A firefighter not working current but is waiting for a fire to put out at a fire station
Employed
The problem of workers being losing interest in looking for formal employment and resort to work for themselves and earn unreport income
Discouraged Worker
Quality of life, composition of output, income distribution, leisure and the environment
What are five limitations of GDP?
The effect of unexpected deflation on the real interest
Increases
An old man comes out of retirement to look for a job during tough economic times as is having a hard time finding a job.
Cyclical Unemployment
The effect of outsourcing and offshoring on the rate of unemployment
Increases