Measuring Macroeconomic Data

Vocabulary flashcards based on macroeconomic data and concepts covered in class.

Gross Domestic Product (GDP)

The total value of goods and services produced in an economy, representing the broadest measure of economic activity.

National Income Accounting

An accounting system that measures economic activity and its components through the relationship: Total Production = Total Expenditure = Total Income.

Value Added

The value of a firm’s output minus the cost of intermediate goods purchased by the firm.

Capital Goods

Goods used in the production of other goods that are not used up in the production process.

Inventory Investment

The change in inventories over a given period, which includes firms' holdings of raw materials, unfinished goods, and unsold finished goods.

Real GDP

A measure of GDP that accounts for inflation and reflects the actual quantity of goods and services produced.

Nominal GDP

A measure of GDP at current market prices, without adjusting for inflation.

Consumer Price Index (CPI)

A measure of the average prices of consumer goods and services, calculated monthly as a cost of living index.

Inflation Rate

The percentage rate of change of the price level over a particular period.

Unemployment Rate

The percentage of people in the civilian population who want to work but do not have jobs.