Measuring the Economy Terms Laspeyres Index - An index where the basket of goods is fixed. Macroeconomic Economy - This refers to the economy as a whole, as opposed to a view of the economy as based on the actions of individual actors. Market-Clearing Level - The level, price, or quantity where supply and demand are equal. Menu Costs of Inflation - Costs associated with inflation that arise when firms have to change printed price schedules. Minimum Wage Laws - Government imposed minimum hourly wages that must be observed. The minimum wage is aimed at providing a minimum standard of living, but also have the ancillary effect of increasing unemployment. National Output - The total value of goods and services produced by an economy in a specified time period. Also known as GDP. Natural Rate of Unemployment - The rate of unemployment that the economy tends to hover around. Most economists believe that this value is around 6%.
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This note was uploaded on 02/09/2012 for the course ECO ECO2013 taught by Professor Jominy during the Fall '08 term at Broward College.