Macro - Notes

Macroeconomics

A branch of economics that studies the overall behavior, structure, and performance of an economy, focusing on aggregate indicators like GDP, inflation, unemployment, and economic growth.

Gross National Product (GNP)

The value of all final goods and services produced by a country's nationals, regardless of where they are produced, including income earned by citizens abroad.

Gross Domestic Product (GDP)

The total sum of expenditures on final goods and services produced within a country's borders over a specific time period.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Unemployment

The proportion of the labor force that is actively seeking work but unable to find employment.

Consumer Price Index (CPI)

An index that measures changes in the prices of a typical basket of consumer goods and services, reflecting the cost of living.

Producer Price Index (PPI)

An index that measures the average change over time in the selling prices received by domestic producers for their output.

Balance of Payments (BOP)

A comprehensive record of all economic transactions between a country and the global economy over a specified period.

Exchange Rates

The value of one country's currency in terms of another currency, influencing international trade and investment.

Full Employment

A situation where all resources are optimally utilized, reducing unemployment and increasing the availability of goods and services.

Economic Growth

An increase in the output of goods and services in an economy, typically measured as the rate of increase in GDP.

Price Stability

A state where prices in the economy remain relatively constant, avoiding the adverse effects of inflation and deflation.

Fiscal Policy

Government policies regarding taxation and spending to influence economic conditions.

Monetary Policy

Central bank actions that manage the money supply and interest rates to achieve macroeconomic goals.

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Economic Productivity

A measure of the efficiency of production, indicated by the output per unit of input.