Dictionary
The total value of all of the goods and services produced in the economy during a given year.
What is GDP?
The total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year in order to remove the effects of price changes.
What is real GDP?
Non-working people who are capable of working but have given up looking for a job due to the state of the job market, they would like to be employed and have looked for a job in the recent past but are not currently looking for work
What are discouraged workers?
Public borrowing and public savings
What are things shared by the government and the financial sector?
Consumption, investment, government spending, net exports and taxes.
What are taxes?
(Things that are considered in the GDP)
People are actively looking for work but aren't currently employed
Whats the definition of Unemployment?
Total value of all final goods and services produced in the economy during a given year, calculated with the prices current in the year in which the output is produced.
What is Nominal GDP?
The component of overall unemployment that results directly from cycles of economic upturn and downturn.
What is Cyclical unemployment?
Revenues & goods and services.
What are things shared my firms and product markets?
Consumer spending, private borrowing, labor, and inflation.
What is inflation?
(Things in the circular flow diagram)
The benefit households offer to the resource market
What is Revenue?
Measures the reduction in the value of all of the goods and services produced in an economy when inflation is taken into account.
What is the GDP deflator?
The rate that arises from the effects of frictional plus structural unemployment.
What is the natural rate of unemployment?
Labor and income.
What are things shared by households and resource market?
Buying a new home, importing a robot from Japan to set up a factory, repairing the street, getting a portrait made during WWII.
What is the portrait?
(Things that are accounted for in the GDP)
Mismatch between job seekers and types of jobs available
What is structural unemployment?
In Fruitland they produced 300 apples, 400 bananas and 100 oranges. In 2008 their prices were $1,$2 and $3 respectively. In 2009, all items cost $4. What is nominal GDP?
What is $3,200?
When does the unemployment rate always rise?
What is the recession of an economic cycle?
non market transactions, intermediate goods and services, inputs, used goods, financial assets, and foreign-produced goods and services
What are things not included in the GDP?
Tax approach, value-added approach, expenditure approach and income approach.
What is the tax approach?
(Approaches to calculate the GDP)
A government-mandated floor on the price of labor.
What is the minimum wage?
In Fruitland they produced 300 apples, 400 bananas, and 100 oranges. In 2008 their prices were $1,$2 and $3 respectively. In 2009, all items cost $4. In 2010, apples and oranges were $2 and bananas sold for $5. What is its real GDP if we use 2009 as its based year?
What is $3,200?
The unemployment rate in Mexico. (+/-2%)
What is 3.3%?
What are Mexico´s, US or Canada´s 3 largest trading partners?
Mexico - US, Canada and China.
Canada- US, China and Mexico.
US- Canada, Mexico and China.
Revenues, disposable income, profits, taxes, government transfers.
What are profits?
(Things related to individuals income)