AP Macro Unit 2 terms

Definition/types of GDP (gross domestic product)

GDP: market value of all FINAL GOODS AND SERVICES produced IN A NATION in ONE YEAR

rGDP: (real) GDP adjusted for inflation

nGDP: (nominal) GDP with inflation not included

Expenditures approach to GDP

CIGNX (consumer, investment, government, andnew exports) spending is considered to see health of economy

Value Added approach to GDP

considers the prices of final goods with the cost of making those goods subtracted

income approach to GDP

added incomes of all owners of CELL

CPI

(Consumer price index)=current year costs/base year costs

usually used on a group of specific goods called BASKET GOODS

types of unemployment

frictional-in between jobs, normal amount of time)

cyclical-employment that changes based on economic health; loss of job due to recession, get job because of growth

structural - changes in tech of skills required

unanticipated inflation

increase in price level of economy- can hurt people who loan money at fixed rates and help people who take out loans. Examples of other scenarios: raises that are more of less than the inflation rate, retirement payments being fixed

what counts under COGNX