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GDP
The total market value for final goods and services produced inside the USA in one year no matter who owns the company.
Final Goods
The end product after all processing.
Intermediate Goods
Goods and services purchased for further processing and/or manufacturing.
Non Production Transactions
Income earned, but not because you productively used your resources.
Calculating GDP
C+Ig+G+Xn
C
Personal consumption expendatures-household spending.
Ig
Gross private domestic investment.
G
Government purchases.
Xn
Exports-imports.
Income Formula
W+P+i+R+Inbt+Dep
W
Compensation of employees-wages/comissions.
R
Rent.
i
Interest payments.
P
Profits.
Inbt
Indirect business sales tax.
Dep
Depreciation for a good.
Gross
Total investment in a year.
Net
Gross private domestic investment-depreciation.
NDP
An estimate of what is sustainable to produce when capitol equipment wasn’t.
Nominal GDP
Not adjusted for inflation or deflation.
RGDP Per Capita
RGDP per person.
Percent Change
final-inital/initial x 100
Inflation/Deflation
A sustained increase/decrease in average or general level of prices.
Disinflation
Inflation that is lower than the previous year.
CPI
A weighted market basket of 300 goods and services purchased by consumers.
Peak
Full employment and output, a temporary maximum, which inflation and unemployment may be below the natural rate.
Contraction
Decrease in output, income and employment, widespread contraction of business and consumer spending.
Trough
Recession bottoms out.
Expansion/Recovery
Increase in output, income and employment. Increases in consumer and business spending. Typically, a bit of inflation.
Frictional Unemployment
You quit/are fired and are searching for work.
Structural Unemployment
The job is lost forever due to structural changes in the economy. Your skill set is not employable, replaced by technology or outsourced.
Cyclical Unemployment
You get laid off due to lower levels of spending.
NRU
A natural rate of unemployment even when the economy is doing well.
Potential Output
The real level of output (RGDP) when the economy is fully employed.
Flaws In The Unemployment Rate
People that are part time, and that are discouraged.
Graphing Demand Pull Inflation
When spending outpaces the ability to produce. Too much money chasing too few goods.
Acceptable Inflation
2-3%
Inflation Where Action Is Taken
5% or more.
Hyperinflation
50% or more.
Negative Supply Shock
When the costs of a major resource increase dramatically.
Graphing Cost Push Inflation
When the costs of major resources push the price level up.
Note 
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