Term
| GDP Definitions Parts (4) |
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Definition
1) Market value
2) Final goods
3) Produced within country
4) In a given time period |
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Term
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Definition
| (C+I+G+X-M), (Wages/Salaries + Other factor income) and it equals Aggregate Expenditure |
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Term
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Definition
| The value of final goods and services produced in a year when valued at the prices of a reference base year |
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Term
| Uses of Estimating Real GDP (2) |
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Definition
1) To compare the standard of living over time
2) To compare the standard of living across countries |
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Term
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Definition
| The gap between real GDP per person would have been and what it is now |
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Term
| Business Cycle Phases (2) and Turning Points (2) |
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Definition
1) Expansion
2) Recession
1) Peak
2) Trough |
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Term
| Limitations of Real GDP (4) |
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Definition
1) Household production
2) Underground economic activity
3) Leisure time
4) Environmental quality |
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Term
| Chain-Dollar Real GDP Calculation |
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Definition
1) Get nominal GDP for year X and year Y
2) Get the Q of year Y valued at prices of year X
3) Get the Q of year X valued at price of year Y
4) Compare the two quantities at price Y and at price X and find the average percentage change
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Term
| Why Uneployment is a Problem? (2) |
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Definition
1) Loss incomes and production
2) Loss in human capital |
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Term
| Labour Market Indicators (4) |
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Definition
1) The unemployment rate = # unemployed/labour force
2) The involuntary part-time rate
= # involuntary part time/labour force
3) The labour force participation rate
= labour force/working age population
4) The employment-to-population ratio
= # employed/working age population |
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Term
| Measures of Unemployment (8) |
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Definition
1) R1 - unemployed 1 yr+
2) R2 - unemployed 3 months-
3) R3 - U.S. rate
4) R4 - CAN official rate
5) R5 - + discouraged searchers
6) R6 - + long term future starts
7) R7 - + involuntary part-timers
8) R8 - +R5+R6+R7 |
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Term
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Definition
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Term
| Types of Unemployment (4) |
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Definition
1) Frictional - when ppl are moving from one job to another
2) Cyclical - created when there is an expansion or recession, there is extra unemployment or extra employment
3) Structural - happens due to technology changes
4) Natural - only involves structural and frictional |
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Term
| Full Employment Influenced By (4) |
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Definition
1) Age distribution of pop.
2) Scale of structural change
3) Real wage rate
4) Unemployment benefits |
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Term
| Why Inflation and Deflation are Problems (4) |
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Definition
1) Redistributes income
2) Redistributes wealth
3) Lowers real GDP and employment
4) Diverts resources from production |
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Term
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Definition
| When inflation is 50%+ a month, society collapses |
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Term
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Definition
= Cost of CPI basket at current-period prices
Cost of CPI basket at base-period prices |
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Term
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Definition
= CPI this year - CPI last year x 100
CPI last year |
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Term
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Definition
1) New goods bias
2) Quality change bias
3) Commodity substitution bias
4) Outlet substitution bias |
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Term
| Alternative Price Indexes (2) |
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Definition
1) GDP Deflator = Nominal GDP/Real GDP x 100
2) Chained Price Index for Consumption
CPIC = Nominal consumption expenditure x 100
Real consumption expenditure |
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