Economic Indicators. Gross Domestic Product GDP per Capita.

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Economic Indicators

Transcript of Economic Indicators. Gross Domestic Product GDP per Capita.

Page 1: Economic Indicators. Gross Domestic Product GDP per Capita.

Economic Indicators

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Gross Domestic Product

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GDP per Capita

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Gross National Product

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What is not calculated in the GDP

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Real v. Nominal Wages

+REAL =

NOMINAL=

Base Year

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Real and Nominal Interest Rates

Real: Accounts 4

Inflation rate

Nominal: Rate not adjusted 4 inflation

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Real and Nominal GDP

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GDP Deflator

w/

100Nominal

Real

Indicator of

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CPI = Consumers Price Index

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Market Basket: items used to track inflation

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Inflation rate

increase in price level of goods /

services

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THE COSTS OF INFLATION

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Deflation

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Unemployment Rate (looking but can’t find work)

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Labor Force Participation Rate

% of population--16 +

older

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Discouraged Workers

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The Underemployed

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Cyclical UnemploymentLow points/ fluctuations in cycle = cyclical unemployment

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THE NATURAL RATE OF UNEMPLOYMENT• …normal rate of employment which fluctuates…

Includes…