Create an account
National Income Accounting
a system that collects macroeconomic statistics on production, income, investment, and savings
Gross Domestic Product (GDP)
the dollar value of all final goods and services produced within a country's borders in a given year
the total amount of goods and services in the economy abailable at all possible price levels
the anound of goods and services in teh economy that will be purchased at all possible price levels
1) Business investment
2) Interest rates and credit
3) Consumer expectations
4) External shocks
key economic variables that economists use to predict a new phase of a business cycle
unemployment that occurs when workers' skills do not match the jobs that are available
unemployment that rises during economic downturns and falls when the economy improves
the percentage of nations's labor force that is unemployed
Number unemployed/labor force
a measurement that shows how the average price of a standard group of goods changes over time
Consume Price Index (CPI)
a price index determind by measuring the price of a standard group of goods meant to represent the 'market basket' of a typical urban consumer
updated cost/base period cost
theory that inflation occurs when demand for goods and services exceeds exsistin supplies
theory that inflation occurs when producers raise prices in order to meet increased costs
the process by which rising wages cause higher prices, and higher prices, and higher prices cause higher wages
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