ap

Gross Domestic Product (GDP): Measures the total value of all final goods and services produced within a country's borders during a specific period.

• Nominal GDP: GDP measured in current prices.

• Real GDP: GDP adjusted for inflation.

Inflation: The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

• Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services.

• GDP Deflator: A measure of the level of prices of all new, domestically produced, final goods and services in an economy.

Unemployment: The state of being without a job but actively searching for work.

• Unemployment Rate: The percentage of the labor force that is unemployed.

• Types of Unemployment:

• Frictional: Occurs when people are temporarily between jobs.

• Structural: Occurs due to a mismatch between the skills of the labor force and the skills demanded by employers.

• Cyclical: Occurs due to economic fluctuations (recessions).

Fiscal Policy: Government's use of spending and taxation to influence the economy.

• Expansionary Fiscal Policy: Increased government spending or decreased taxes to stimulate economic growth.

• Contractionary Fiscal Policy: Decreased government spending or increased taxes to slow down economic growth.

Monetary Policy: Actions undertaken by a central bank to manipulate

Gross Domestic Product (GDP): Measures the total value of all final goods and services produced within a country's borders during a specific period.

• Nominal GDP: GDP measured in current prices.

• Real GDP: GDP adjusted for inflation.

Inflation: The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

• Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services.

• GDP Deflator: A measure of the level of prices of all new, domestically produced, final goods and services in an economy.

Unemployment: The state of being without a job but actively searching for work.

• Unemployment Rate: The percentage of the labor force that is unemployed.

• Types of Unemployment:

• Frictional: Occurs when people are temporarily between jobs.

• Structural: Occurs due to a mismatch between the skills of the labor force and the skills demanded by employers.

• Cyclical: Occurs due to economic fluctuations (recessions).

Fiscal Policy: Government's use of spending and taxation to influence the economy.

• Expansionary Fiscal Policy: Increased government spending or decreased taxes to stimulate economic growth. Graphically, this shifts the Aggregate Demand curve to the right.

• Contractionary Fiscal Policy: Decreased government spending or increased taxes to slow down economic growth. Graphically, this shifts the Aggregate Demand curve to the left.

Monetary Policy: Actions undertaken by a central bank to manipulate