economic indicators. gross domestic product gdp per capita
TRANSCRIPT
Economic Indicators
Gross Domestic Product
GDP per Capita
Gross National Product
What is not calculated in the GDP
Real v. Nominal Wages
+REAL =
NOMINAL=
Base Year
Real and Nominal Interest Rates
Real: Accounts 4
Inflation rate
Nominal: Rate not adjusted 4 inflation
Real and Nominal GDP
GDP Deflator
w/
100Nominal
Real
Indicator of
CPI = Consumers Price Index
Market Basket: items used to track inflation
Inflation rate
increase in price level of goods /
services
THE COSTS OF INFLATION
Deflation
Unemployment Rate (looking but can’t find work)
Labor Force Participation Rate
% of population--16 +
older
Discouraged Workers
The Underemployed
Cyclical UnemploymentLow points/ fluctuations in cycle = cyclical unemployment
THE NATURAL RATE OF UNEMPLOYMENT• …normal rate of employment which fluctuates…
Includes…