Global Economics - Key Terminology

GDP

The total value of all goods and services produced within a country’s borders in a specific time period.

Real GDP

GDP adjusted for inflation, showing the true value of goods and services produced.

Nominal GDP

GDP measured at current market prices, without adjusting for inflation.

Base Year

A reference year used for comparison when calculating real GDP.

Good(s)

Physical items that can be bought or sold.

Service

Activities or tasks performed for others.

Deflation

A general decrease in prices of goods and services, increasing purchasing power.

Aggregate Demand

The total demand for goods and services in an economy at a given overall price level and time.

Market Economy

An economic system where decisions about production and prices are based on supply and demand with little government intervention.

Supply

The amount of goods or services that producers are willing and able to sell at different prices.

Demand

The amount of goods or services that consumers are willing and able to buy at different prices.

Opportunity Cost

The value of the next best alternative given up when making a choice.

Capital Resource

Man-made goods used to produce other goods and services.

Microeconomic

The study of individual consumers and businesses and how they make decisions.

Macroeconomic

The study of the economy as a whole, including inflation, unemployment, and economic growth.

Economic Stimulus Measures

Government actions, like spending or tax cuts, aimed to boost economic activity.

Unemployment

The condition of people who are able and willing to work but cannot find a job.

Economic Indicators

Statistics that show the current state or future trends of the economy.

Fiscal Policies

Government decisions about taxation and spending to influence the economy

Equity

Fairness or justice in the way people are treated or resources are distributed.

Economic Equity

The idea that everyone should have fair access to economic opportunities and resources.

Economic Disparity

Differences in wealth and income among individuals or groups in a society.

Sustainabillity

Using resources in a way that meets current needs without harming the ability of future generations to meet theirs.