GDP + Poverty

Gross Domestic Product (GDP)

The dollar value of all final goods and services produced within a country's borders in a given year.

National Income Accounting

A system used by economists to collect and organize macroeconomic statistics on production, income, investment, and savings.

Intermediate Goods

Products used in the production of final goods, such as computer chips for computers.

Durable Goods

Goods that last a relatively long time, such as computers and refrigerators.

Nondurable Goods

Goods that last a short period of time, such as food and light bulbs.

Expenditure Approach

An approach to calculate GDP by adding all annual expenditures including consumer goods, business goods, government goods, and net exports.

Income Approach

An alternative approach to calculate GDP by adding up all incomes earned in the economy.

Nominal GDP

GDP measured in current prices, not adjusted for inflation.

Real GDP

GDP expressed in constant prices, adjusted for inflation.

Unemployment Rate

The percentage of the nation's labor force that is unemployed.

Frictional Unemployment

Temporary unemployment as people take time to find a job.

Structural Unemployment

Unemployment caused by a mismatch between workers' skills and the skills needed for available jobs.

Cyclical Unemployment

Unemployment that occurs during economic downturns when demand for goods and services drops.

Inflation

The general increase in prices across an economy.

Poverty Threshold

The income level below which income is insufficient to support a family or household.

Gross National Product (GNP)

The total value of all final goods and services produced by a country's residents, regardless of where the production takes place.

Consumer Price Index (CPI)

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Balance of Trade

The difference between a country's exports and imports of goods and services.

Fiscal Policy

Government adjustments to spending and taxation to influence the economy.

Monetary Policy

The process by which a central bank manages the money supply and interest rates to achieve macroeconomic objectives.

Aggregate Demand

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

Aggregate Supply

The total supply of goods and services that firms in an economy plan to sell during a specific time period.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period, typically involving periods of expansion and contraction.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months.

Depression

A prolonged period of economic downturn, typically characterized by high unemployment and decreased consumer spending.

Stagflation

An economic condition characterized by slow economic growth, high unemployment, and high inflation.

Trade Deficit

A situation where a country's imports exceed its exports, leading to a negative balance of trade.

Fiscal Deficit

The difference between the government's total expenditures and total revenues when expenditures exceed revenues.

Supply Shock

An unexpected event that suddenly increases or decreases the supply of a good or service, impacting prices.

Interest Rate

The amount charged by lenders to borrowers for the use of their money, typically expressed as a percentage.

Consumer Confidence Index (CCI)

A measure of consumer optimism regarding the overall state of the economy and their personal financial situation.

Market Equilibrium

The point at which the quantity of a good demanded equals the quantity supplied, resulting in stable prices.

Externalities

Costs or benefits of a market activity that affect third parties who did not choose to be involved in that activity.