TEST 2 STUDY GUIDE-2 - Real GDP (Gross Domestic Prodmeasure...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Real GDP (Gross Domestic Prod- measure value final G&S borders ,country 1 year Nominal GDP- totals $$ all G &S produced borders given country using their current prices duri year produced . Unemployment- state a person in cannot get a job despite being willing to work and actively seeking work. Inflation- An increase in the overall level of prices, not all prices, non-econmic costs Modern economic growth- (in which output per person rises) annual increase output per person not large, Financial investment- Captures w/ ordinary people mean say investment. The purchase assets like stock, bonds, real estate in the hope of reaping a financial gain. Economic investment- creation and expansion busi enterprises. Only include money spent purchasing newly created capital goods machinery, tools, factories, and warehouses. The Business cycle- Macro-economic- Studies behavior economy as whole. It is primarily two topics: long-run economic growth and the short-run fluctuations in out-put and employment. Recession- Sometimes growth proceeds more rapidly and sometimes it proceeds more slowly. It may even turn negative for a while so that output and living standards actually decline.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Gross Domestic Product (GDP) - aggregate output dollar value all final g & s produced borders country,time (Monetary measure of market value of all vital goods and services within a country within a year. Monetary Measure- What the GDP does. Intermediate Goods - Goods and services purchased 4 resale, for further processing or manufacturing. Final Goods - Are consumption goods, capital goods, and services that are purchased by their final users, rather than for resale or for further processing or manufacturing. Multiple Counting -Wrongly including value intermediate goods inGDP; counting g & s more than once. This will cause a distortion in the value GDP. Value Added-
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/01/2010 for the course ECO 2013 taught by Professor Haroldj.vanboven during the Fall '09 term at Edison State College.

Page1 / 8

TEST 2 STUDY GUIDE-2 - Real GDP (Gross Domestic Prodmeasure...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online