economy 2 Flashcards
GDP (PIL)
Gross Domestic Product. gross domestic product is a macroeconomic quantity that measures the aggregate value, at market prices, of all the final goods and services produced in the territory of a country or in a specific period of time
recession
when two successive quarters or six motnhs show a decrease in GDP
depression
a severe recession
discourage workers
unemployed people that were looking for a job but haven given up
frictionally unemployed
the time period beetween jobs when a worke is searching for or transitioning from a job to another
structural unemployed
unemployement caused by lack (mancanza) of demand in that specific type of labor
Deflation
A decrase in the general price level of goods and services
inflation
An Increase in the general price level of goods and services
Why some countries have high GDP and others have low( some countries are rich and other poor):
a. Lack of natural resources.
b. Corrupt or incapable governments.
Factors of how production effect the efficiency:
a. Land
b. Workers
c. Capital( and also workers education, knowledge aka human capital)
d. Technology:
GDP per capita
GDP of the country divided by its population
Productivity and growth:
a. The more a worker produces, the more a worker can earn.
b. Higher value produce also the growth effect.
technology
The sum total of knowledge and information that society has acquired concerning the use of resources to produce goods and services.
