Macroeconomics Mcgraw Hill Ch. 7-9

a training session in exel

An example of human capita

Purchasing Power Party

purchasing power in different countries should be the same, when stated in common currency, allows us to compare the cost of living,almost never holds exactly

Increase in productivity per person leads tooo

increases in per capita, economic growth, increase in GDP per capita

The level of savings in an economy

can be important in determinate of future productivity and capital investment; a source of funding for physical capital

Human Capital

An organization's employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight.

Core inflation

the rate of inflation excluding the effects of food and energy prices

Market Basket Approach

measures changes in the cost of your shopping basket, gives a single number to your total cost rise over time,

A dollar

changes valeue over time, can reflect the cost of living, has no worth itself

when the cost of living has gone upe, we mean

a dollar buys less today than it used to buy (inflation)

Market basket

representative group of goods and services used to compile the consumer price index

Example of government services

the salaries of those in the military

The diffrence between the sale value of the product and the value of the inputs that went into is is called

the value - added of that stage of production

The goods and services that count towards the GDP are

location of production

U.S. GNP and Germany's GDP

Kelly is a U.S. citizen who works for burton located in Germany. Kelly's work contributes to

Expenditure method

(consumption + investment + govt. spending + net exports)

The most commonly used metric for measuring the vale of a national economy is

Gross Domestic Product, or GDP

Gross Domestic Product

The sum of the market values of all final goods and services produced within a country in a given period of time.

GDP only counts

final goods and services

an example of a final good or service is

a tire to replace your flat

Economic growth can

create jobs, reduce poverty, improve the standard of living

Macroeconomics is used to explain things like

economic growth, unemployment rates, inflation rates

GDP per capita

The GDP per person for different countries; The value of the GDP for a country / the country's population

In macroeconomics we talk about

consumption at a national level, production of all goods in the economy, prices in the agregate

The base year refers too

process are used to calculate real GDP for all four years