Acronyms Flashcards
1
Q
FOMC
A
Federal Open Market Committee: manages monetary policy and sets fed funds target.
2
Q
NAIRU
A
Non Accelerating Inflation Rate of Unemployment: Rate of unemployment when the economy is using all available resources efficiently (AKA “Full Employment”).
NAIRU = (Normal Frictional + Normal Structural) / Labor Force
3
Q
PPP
A
Purchasing Power Parity: Real GDP converted to US dollars using market exchange rates to compare differences in living standards across countries.
4
Q
CPI
A
Consumer Price Index: Weighted average of prices where the weights reflect consumer-purchasing patterns.
