Econ - Basic terms

ECONOMICS - BASIC TERMS

1. GDP - Gross domestic product, the total product produced within a country's borders within a given time period. Used to measure the overall size and health of an economy. 

2. Real GDP - GPA adjusted for inflation, showing the economy's actual growth in production rather than changes  in prices [real gdp = (nominal gdp/gdp deflator) * 100

3. Federal Surplus/Deficit - A surplus occurs when the federal government collects more than it spends, and a deficit occurs when we spend more than is collected. 

4. National Debt - The total amount of money the federal government owes after x time of running a deficit. 

5. Stock - A unit of ownership ina company that gives the owner a claim on the company’s profits and assets. 

6. Bond - A loan made by an investor to a government or corporation, which promises to pay back the loan with interest over time. 

7. NYSE - New York Stock Exchange - the largest stock exchange in the world, major established companies share’s are bought and sold. 

8. Dow Jones Industrial Average - A stock market index that tracks the stock prices of 30 large, well know us companies to show general market trends.

9. NASDAQ - A stock exchange known for tech and growth companies like apple microsoft and Google (100 largest companies) an index. 

10. S&P 500 - a stock market index that tracks the 500 largest us companies. best overall measure of the us stock market. 

11. Inflation/Deflation - inflation is a general rise in prices over time =, reducing purchasing power. Deflation is a general fall in prices. 

12. CPI - consumer price index- a measure of inflation prices that tracks the average change in prices paid by consumers for typical goods and services.  

13. Unemployment Rate - unemployed x labor force x 100%. The number of jobless people out of the labor force looking for work but  cannot find a job. 

14. Recession - a major economic slowdown that features about half a year of negative GDP, high unemployment, low productivity/production, and a general loss of wealth. 

15. Depression  - a significant version of a recession with similar loss of wealth, negative GDP, and high unemployment. Additionally, there are numerous massive business failures and hardships, leading to increased poverty. 

16. Interest Rate - The cost of borrowing money or the reward for saving money, expressed as a percentage. 

17. Mortgage - a long-term loan used to purchase a home or property with the property serving as collateral. 

18. Federal Reserve Bank (the Fed) - The central bank of the United States, responsible for controlling the money supply, regulating banks, and setting interest rates to stabilize the economy. Needs to be autonomous, should not be impacted or controlled by politics. 

19. Jerome (Jay) Powell - Chair of the Fed, responsible for leading monetary policy decisions in the United States. 

20. Public Sector/Private Sector - the public sector inclused goverment run orgs and services. the privet sector consists of businesses owned by individuals or companies. 

21. Import/Export - an import is a good or service brought inot a country, and export is a good or service sold to another country. 

22. Free Trade -  A trade policy that allows goods and services to move between countries with little or no government restrictions.

23. Protectionism - A trade policy that uses tariffs, quotas, or regulations to protect domestic industries from foreign competition.

24. Exchange Rate -  The value of one country’s currency compared to another country’s currency.

25. Strong Dollar/Weak Dollar - A strong dollar can buy more foreign currency and goods, while a weak dollar buys less but can make exports cheaper.

26. Globalization - the increasing economic, cultural, and political interconnectedness of countries through trade, technology, and communication. The concept that the whole world is one marketplace.