Measuring the Econom8

# Measuring the Econom8 - year is reliant on changes in the...

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Measuring the Economy Terms and Formulas Terms Base year - The year from which constant prices or quantities are taken in calculations of such indices as real GDP and CPI. Bureau of Labor Statistics - The government organization responsible for regularly gathering data about the economic status of the population. Consumer price index (CPI) - A cost of living index that measures the total cost of goods and services purchased by a typical consumer within a country. Fixed basket - A set group of goods and services whose quantities do not change over time. This is used, for instance, in the calculation of the CPI. Gross domestic product (GDP) - The sum of the market values of all final goods and services produced within a particular country during a period of time. Gross domestic product deflator (GDP deflator) - The ratio of nominal GDP to real GDP for a given year minus 1. The GDP deflator shows how much of the change in the GDP from a base
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Unformatted text preview: year is reliant on changes in the price level. Gross domestic product per capita (GDP per capita) - GDP divided by the number of people in the population. This measure describes what portion of the GDP an average individual gets. Gross national product (GNP) - An alternative measure of economic activity to GDP. GNP is the sum of the market values of all goods and services produced by the citizens of a country regardless of their physical location. Nominal gross domestic product (nominal GDP) - The sum value of goods and services produced in a country and valued at current prices. Real gross domestic product (real GDP) - The sum value of goods and services produced in a country and valued at constant prices, calibrated from some base year. Real GDP frees year-to-year comparisons of output from the effects of changes in the price level....
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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.

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