Economics 100: Key Concepts and Measurements

This set of flashcards covers key concepts related to Economics 100, including measurements such as CPI, inflation, GDP, and related terms.

Consumer Price Index (CPI)

A measure that examines the weighted average of prices of a basket of consumer goods and services, used to track changes in the cost of living over time.

Inflation Rate

The yearly percentage change in a price index, typically based on the consumer price index (CPI).

Gross Domestic Product (GDP)

The total value of all goods and services produced within a country during a specific period, used to gauge the economic performance.

Real GDP

The production of goods and services valued at constant prices, indicating the actual economic activity after adjusting for inflation.

Nominal GDP

The production of goods and services valued at current prices, not adjusted for inflation.

GDP Deflator

A measure of the price level in an economy, calculated by dividing nominal GDP by real GDP and multiplying by 100.

Market Basket

A representative collection of goods and services used to measure price changes over time.

Price Index

A measure that examines the average prices of a basket of consumer goods and services to assess inflation or deflation.

Producer Price Index (PPI)

An index that measures the average changes in prices received by domestic producers for their output.

Base Year

A year used as a standard for comparison in an index, where values are set to 100.

Weighting

The process of assigning a proportionate value to different components in a price index based on their importance.

Deflation

A decrease in the general price level of goods and services in an economy.

Index

A statistical measure of changes in a representative group of individual data points used to track fluctuations in economic indicators.