National Economic Measures flashcards

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What is meant by “Gross domestic product” in this lesson?GDP and output: GDP measures the market value of final goods and services produced within an economy during a period.
What is meant by “Final versus intermediate” in this lesson?GDP and output: Final goods are counted to avoid counting the same production repeatedly through intermediate sales.
What is meant by “Nominal GDP” in this lesson?GDP and output: Nominal GDP values output at current-period prices.
What is meant by “Real GDP” in this lesson?GDP and output: Real GDP removes price-change effects to compare output volumes over time.
What is meant by “GDP per capita” in this lesson?GDP and output: GDP per capita divides output by population and is an average, not an income-distribution measure.
What is meant by “GDP limitation” in this lesson?GDP and output: GDP omits or imperfectly measures some nonmarket activity, distribution, and environmental effects.
What is meant by “Inflation” in this lesson?Inflation: Inflation is a sustained increase in an aggregate price level.
What is meant by “Price index” in this lesson?Inflation: A price index tracks a specified set of prices using a stated weighting method.
What is meant by “Inflation rate” in this lesson?Inflation: An inflation rate is the percentage change in a price index over a stated interval.
What is meant by “Disinflation” in this lesson?Inflation: Disinflation is a decrease in the inflation rate while the rate can remain positive.
What is meant by “Deflation” in this lesson?Inflation: Deflation is a sustained decline in an aggregate price level.
What is meant by “Purchasing power” in this lesson?Inflation: Purchasing power describes what money can buy at prevailing prices.
What is meant by “Labor force” in this lesson?Unemployment and limitations of indicators: The labor force combines employed people and people classified as unemployed under the survey rules.
What is meant by “Unemployment rate” in this lesson?Unemployment and limitations of indicators: The unemployment rate is unemployed people divided by the labor force.
What is meant by “Active job search” in this lesson?Unemployment and limitations of indicators: U.S. survey classification generally requires active recent search and availability, with specified exceptions such as temporary layoff.
What is meant by “Participation rate” in this lesson?Unemployment and limitations of indicators: Participation measures the labor force relative to the relevant population.
What is meant by “Underemployment” in this lesson?Unemployment and limitations of indicators: Underemployment describes incomplete use of labor, including some involuntary part-time work.
What is meant by “Indicator limitation” in this lesson?Unemployment and limitations of indicators: A headline indicator cannot summarize every aspect of labor-market well-being.