Vocab 1
What does GDP stand for?
Gross domestic product
A farmers purchase of a new tractor.
Included - Investment
A persons income minus individual income taxes.
Disposable Personal Income
When an economy is working properly the unemployment rate will be around what?
4-6%
What approach to GDP uses adds up all wages and salaries people make in a country's economy?
Income Approach
A high schooler's purchase of a 3 year old truck from their neighbor
Excluded - Used good
GDP that is measured in current prices and does not account for price level changes
Nominal GDP
When someone is working at a job for which they are overqualified, or working part-time when they would rather be working full-time.
Underemployment
People lose their jobs because of schedules, or industries slow down or shut downs.
Seasonal unemployment
Goods that last a short period of time, like food and light bulbs are called what?
Included - Consumption
GDP expressed in constant, or unchanging, dollars. Adjusted for Inflation.
Real GDP
What are four main phases of the business cycle?
Expansion, peak, contraction, and trough.
People can’t get a job because they lack skills or their skills do not match the jobs available.
Structural unemployment
Goods that last for a relatively long time like refrigerators are called what?
Durable goods
Excluded - non market transaction
The total amount of goods and services in the economy available at all possible price levels.
Aggregate supply
What is America's current unemployment rate?
3.9%
What approach to GDP calculates consumer goods, business investment, governments spending, and net exports and imports
Expenditure Approach
A social security payment received by a retired person.
Excluded - transfer payment - no money being generated
The amount of goods and services that will be purchased at all possible price levels.
Aggregate demand
What is America's current poverty rate?
12.4%