Studied by 5 people
Gross Domestic Product
total value of all final goods and services produced in a year in a country.
Depreciation
decline in value of capital over time.
Deflation
sustained decrease in overall price level.
Inflation
sustained increase in overall price level.
Labor force participation rate
number of people in labor force divided by working- age population.
Okuns Law
for every 1% increase in unemployment rate above natural rate, output falls 2-3 %.
Full employment
level of unemployment that corresponds with natural rate of unemployment.
Business cycle
epeating fluctuation of financial and economic activity.
Gross Domestic Product Deflator
alternative general price index that reflects importance of products in current market baskets.
Nominal salary
actual number of dollars a person earns.
Real salary
purchasing power of dollars.
Labor force
_includes employed and unemployed adults.
Gross Domestic Product (GDP)
total value of all final goods and services produced in a year in a country
National income (NI)
sum of income earned by factors of production of the countrys citizens
Personal income (PI)
income received by a household before personal income taxes
Depreciation
decline in value of capital over time
Labor force
includes employed and unemployed adults
Labor force participation rate
number of people in labor force divided by working-age population
Discouraged workers
people who are able and willing to work but stop trying to find work due to frustrations
Full employment
level of unemployment that corresponds with natural rate of unemployment
Okuns Law
for every 1% increase in unemployment rate above natural rate, output falls 2-3%
Inflation
sustained increase in overall price level
Deflation
sustained decrease in overall price level
Nominal salary
actual number of dollars a person earns
Real salary
purchasing power of dollars
Consumer Price Index (CPI)
governments gauge of inflation
Producer Price Index (PPI)
measures changes in prices of wholesale goods
Gross Domestic Product Deflator
alternative general price index that reflects importance of products in current market baskets
Business cycle
repeating fluctuation of financial and economic activity
Say’s Law
supply creates its own demand
Note 
Flashcard (50)