Unit 2 Flashcards
GDP (Gross domestic product)
Total monetary value of all finished goods and services w/in a countries borders. (typically for a year)
GNP (Gross National Product)
The total value of all the goods and services produced by the residents & businesses of a country regardless of where they were produced.
Expenditure Approach to GDP
GDP=C+I+G+(X-M)
Def: GDP= Consumption+Investment+ Government spending + Net Exports( This is exports minus imports)
Income Approach to GDP
GDP=C+I+G+Xn
Def: GDP= Consumption+Investment+ Government spending + Net Exports
Value-Added Approach to GDP (Production Approach )
GDP=Gross value of output - value of intermediate consumption
Unemployment Rate (U)
U= 100*(Unemployed/ Total labor force)
Def: total percentage of people out of work but looking to work
Number Unemployed (u)
the total count of people within the labor force who are actively seeking employment but currently do not have a job
Real GDP
a measure of the total value of a country’s goods and services produced, adjusted for inflation
Nominal GDP
a measure of a country’s economic output that uses current market prices to calculate the total value of all goods and services produced within a specific time period
GPI
Frictional Unemployment
Unemployment caused by available jobs not suiting the preferences of the individuals unemployed (ex college grads unable to find entry level jobs)
Structural Unemployment
Unemployment caused by a shift in a system ( ex changes in technology means certain skills are no longer required )
Cyclical Unemployment
Unemployment caused by ebbs and flows of the business cycle
Seasonal Unemployment
a type of unemployment that occurs due to fluctuations in labor demand based on the seasons
