Module 1

Macroeconomic Literacy

The ability to read and interpret macroeconomic news.

Skewed Information

Information that is distorted, misrepresented, or presented in a way that lacks balance or objectivity.

Personal Bias

An individual's subjective perspective influenced by beliefs, values, or experiences.

Outdated Facts

Information that was accurate at one time but has since been superseded by new data or developments.

News Bias

Partiality in how news organizations select, frame, and report stories.

Gross Domestic Product (GDP)

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

Gross National Product (GNP)

The total value of all goods and services produced by a country's citizens and businesses, regardless of where they are located.

Inflation

The rate of growth of the price level.

Consumer Price Index (CPI)

A measure used to track changes in the average prices of a basket of goods and services commonly purchased by households.

Nominal GDP

The total value of all goods and services produced in a country, measured using current prices during the year in question.

Real GDP

The total value of all goods and services produced, measured using constant prices from a base year, to remove the effect of inflation.

GDP Deflator

A measure that compares nominal GDP to real GDP to reflect price changes in the economy.

Total Factor Productivity (TFP)

Measures the efficiency with which all inputs are used in the production process.

Private Saving

The portion of income that households and businesses do not spend on consumption or taxes.

Government Saving

The difference between government revenue and government spending, indicating a budget surplus or deficit.

National Saving

The total amount of savings generated within an economy, consisting of both private saving and government saving.

Marginal Product of Labor (MPN)

The additional output produced by employing one more unit of labor, holding all other factors constant.

Substitution Effect

Consumers switch to relatively cheaper goods when the price of a good changes.

Income Effect

When a price change affects the consumer’s real purchasing power, making them feel richer or poorer.