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Definition
Gross Domestic product
If the countries achieving each goal that the gross domestic product, unemployment rate and the inflation rate the most
important measure of an economy is gross domestic product or GDP.
GDP is the value of all final goods and services produced with other countries border in a specific period of time,
usually a year.
GP doesn't include every transaction that's in the economy.
***For example, if you buy a used domestic car, it doesn't count or GDP 'cause nothing new is produced.
Now that same logic applies to buying financial assets like stocks, or when one company buys another company, for
example, when Google buy YouTube, those don't count towards GDP 'cause no new good or service was produced.
Also, GDP often doesn't include illegal activity since drug dealers don't usually report their sales to the government or
nontraditional economic activity like household production.
***For example, if a plumber charges $100 to fix their hot water heater, that counts towards GDP when he fixes.
If he fixes his own water heater that doesn't count or GDP. |
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Term
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Definition
Macro Economics is the study of the entire economy.
Macro economists say the big stuff like economic output, unemployment, inflation, interest rates and government
policies. |
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Term
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Definition
*Marilyn Loden coined the phrase 'glass ceiling' at a 1978 Women's Exposition. Women make up 55.9% of the labor force in the U.S but hold only 29.9% of executive positions.
A glass ceiling is a metaphor used to represent an invisible barrier that prevents a given demographic (typically applied to women) from rising beyond a certain level in a hierarchy. The metaphor was first coined by feminists in reference to barriers in the careers of high-achieving women. |
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Term
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Definition
| a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. |
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Definition
| a general increase in prices and fall in the purchasing value of money. |
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Definition
| In general, the unemployment rate in the United States is obtained by dividing the number of unemployed persons by the number of persons in the labor force (employed or unemployed) and multiplying that figure by 100. |
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Term
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Definition
Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both.
Ex: Limiting the terms of unemployment benefits |
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