question
Gross Domestic Product(GDP)
answer
The total amount of goods and services produced in a single year within the country
question
National Income(NI)
answer
Total income earned by a countries citizens
question
Personal Income(PI)
answer
Total revenue of a household before taxes
question
Disposable Income(DI)
answer
Personal income after taxes
question
Expenditure approach to GDP
answer
Calculates GDP by adding up the total spending
question
Income approach to GDP
answer
Calculating GDP by adding up all earnings from resources
question
Net Domestic Product
answer
GDP minus depreciation
question
Circular Flow
answer
The total income received by all factors of production in a given period
question
Aggregate Income
answer
The total spending on final goods and services in a given period
question
Aggregate Expenditure
answer
= GDP, cause the profits that a firm will eventually go to a house hold through employees
question
Aggregate Income = Aggregate Expenditure
answer
Employed + unemployed
question
Labor force
answer
People not working after looked for work during previous 4 weeks
question
Unemployed
answer
(Labor force / working age population) * 100
question
Labor force participation rate
answer
(Unemployed/Labor force) * 100
question
unemplyment rate
answer
Unemployment that results because it takes time for workers to search for the jobs that best suit their skills
question
Frictional unemployment
answer
unemployment resulting from permanent changes in environment or improvements technology
question
Structural unemployment
answer
Unemployment that rises during economic downturns and falls when the economy improves
question
Cyclical unemployment
answer
Unemployment linked to seasonal work like life guards
question
Seasonal unemployment
answer
Individuals who would like to work but have given up looking for a job
question
Discouraged workers
answer
Individuals that claim to be unemployed to claim benefits when in reality they dont want a job or work for cash
question
Dishonest workers
answer
The level of unemployment that prevails in an economy that is producing at a full employment level of output
question
Natural Rate of Unemployment (NRU)
answer
Level of employment that corresponds with the NRU
question
Full employment
answer
For every 1 percent that the NRU drops production drops 2-3 percent
question
Okuns law
answer
A general and progressive increase in prices
question
Inflation
answer
A general and progressive decrease in prices
question
Deflation
answer
Actual number of dollars earned
question
Nominal salary
answer
The amount of things you can buy
question
Real salary
answer
When people think they are richer then they are because their nominal salary increased but their real salary stayed the same
question
Money illusion
answer
The governments approximation of inflation
question
Consumer price index(CPI)
answer
The inflation of wholesale goods like wood or steel and can be a indication of future inflation because wholesale price increase pass onto consumers
question
Producer Price Index(PPI)
answer
Nominal GDP/Real GDP x 100
question
GDP Deflator
answer
The value of all the goods and services that were produced that year
question
Nominal GDP
answer
The value of all the goods and services that were produced that year adjusted for inflation
question
Real GDP
answer
The changes in economical activity which happens periodically over a period of time
question
Business cycle
answer
What a business cycle is sometimes called
question
Economical Cycle / Trade Cycle
answer
Theorize that wages, prices, and interest rates fluctuate quickly, clearing labor and capital markets, and allowing input and output prices to stay in line with each other and also believed in Says law
question
Classical economists
answer
The idea that supply creates its own demand
question
Say´s law
answer
undefined
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
