Macroeconomics: GDP, Economic Growth, and Inflation Indicators

Comprehensive vocabulary flashcards covering the exam study guide topics on GDP, economic growth, inequality metrics, and inflation indicators.

Gross Domestic Product (GDP / PIB)

The total monetary market value of all final goods and services produced within a country over a specific time period, subject to limitations such as excluding non-market activities and environmental externalities.

Expenditure Approach to GDP

A method of calculating GDP by aggregating all final expenditures in the economy, comprising household consumption, business investment, government spending, and net exports.

Nominal GDP (PIB nominal)

Gross Domestic Product evaluated at current market prices, without adjusting for the effects of price inflation or deflation.

Real GDP (PIB réel)

Gross Domestic Product adjusted for price changes over time, calculated using constant base-year prices to measure actual volume of output.

Implicit Price Index (IIP / GDP Deflator)

A broad measure of inflation that reflects the ratio of nominal GDP to real GDP, used to determine the price level changes for all domestically produced final goods and services.

Economic Expansion

A phase of the business cycle characterized by increasing economic activity, growing employment, and sustained positive real GDP growth.

Recession

A significant, widespread decline in general economic activity and production, typically marked by consecutive periods of contraction in real GDP.

Economic Growth Rate

The percentage change in real GDP over a given time interval, indicating the speed at which an economy's total production is expanding.

GDP per Capita (PIB par habitant)

An economic indicator calculated by dividing a country's total GDP by its total population, providing a measure of average economic output per person.

Lorenz Curve

A graphical representation of the distribution of income or wealth, plotting the cumulative percentage of total national income against the cumulative percentage of the population.

Gini Coefficient

A statistical metric derived from the Lorenz curve that quantifies income inequality, where $0$ represents perfect equality and $1$ represents complete inequality.

Human Development Index (HDI / IDH)

A composite statistic combining indicators of life expectancy, educational attainment, and per capita income to evaluate broader human wellbeing beyond monetary output alone.

Green GDP (PIB vert)

An adjusted measure of standard GDP that monetizes and subtracts the depletion of natural resources and environmental degradation caused by economic production.

Great Depression of 1929

The severe worldwide economic collapse beginning in $1929$, characterized by steep drops in output, mass unemployment, deflation, and widespread banking failures.

Inflation

A general and ongoing increase in the aggregate price level of goods and services in an economy over time, which reduces the purchasing power of money.

Deflation

A persistent decrease in the general price level of goods and services, associated with economic risks such as postponement of consumption, declining investment, and debt deflation spirals.

Hyperinflation

An extremely rapid, uncontrolled inflation where price levels surge dramatically, eroding the real value of the currency and disrupting normal economic exchange.

Consumer Price Index (CPI / IPC)

A price index measuring changes over time in the weighted average price of a representative basket of consumer goods and services purchased by households.

Inflation Rate

The percentage rate of change in a price level index (such as the CPI) from one period to another, reflecting the rate of erosion in consumer purchasing power.

Nominal vs. Real Values

Nominal values measure economic statistics in current unadjusted monetary units, whereas real values adjust nominal figures for inflation to represent actual purchasing power.

Indexation

The practice of automatically adjusting wages, taxes, pensions, or other monetary payments in accordance with a price index (such as the CPI) to protect purchasing power against inflation.