Studied by 4 people
GDP =
C+I+G+(X-I)
Real GDP per Capita=
GDP/Population
Nominal GDP=
(P1*Q1)+(P2*Q1)
Real GDP=
(Nominal GDP/GDP deflator)*100
Economic Growth Rate=
[(new GDP-old GDP)/old GDP]*100
Labor Force=
employed + unemployed
Unemployment Rate=
(# unemployed/# in labor force) * 100
Labor Force Participation Rate=
(Labor force/non institutionalized population over 16)*100
Target % of Economic Growth
2-5%
Target % of Inflation
2%
Target % of Unemployment rate
4-6%
expansion
GDP rises; positive economic growth rate
peak
GDP stops rising; was positive, then becomes negative or 0% growth rate
contraction
GDP falls; negative economic grwoth rate (6 moths of this = recession)
trough
GDP stops falling; growth rate was negative, then becomes positive or was 0%
GDP
the $ value of final goods and services produced within a country’s borders in a given time period
real GDP per capita
identifies the value of the products each person makes on average or an average income per person
Nominal GDP
GDP measured in current prices; does not account of inflation from year to year
Real GDP
GDP expressed in constant, or unchanging dollars
Frictional
individuals are qualified workers with transferable skills, but haven’t found a job yet
seasonal
frictional unemployment dye to the time or year and nature of the job
structural
the is a mismatch between the skills employers want and those that worker(s) have in common in the region or due to changes in technology
technological
structural unemployment cause by technological changes and advances
cyclical
results from economic downturns (recessions where workers are laid off)
discouraged workers
some people are no longer looking for a job because they have given up
part-time workers/underemployed persons
people who want more shifts or are working in a job below their qualifications
illegal labor
many people work “under the table” and it is not reported
racial/age inequalities
range of unemployment rates due to discrimination and/or prejudices
Note 
Flashcard (54)