Crash Course Economics Episode 5
Real GDP
GDP adjusted for inflation
Nominal GDP
GDP not adjusted for inflation
Macroeconomists
make predictions based on data, theoretical models, and historical trends
frictional unemployment
unemployment that occurs when people take time to find a job
structural unemployment
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
cyclical unemployment
unemployment that rises during economic downturns (recessions) and falls when the economy improves
Deflation
A decrease in the general price level of goods and services
3 specific measure that economists analyze to see if a country is achieving each goal are
1. Gross domestic product 2. Unemployment Rate 3. Inflation Rate
Economic goals of policy makers
1. Keep the economy growing 2. Limit unemployment 3. Keep prices stable
Examples of things NOT included in a country's GDP
1. Used Car sales 2. Stocks 3. Companies buying other companies 4. Illegal activity
Inflation
Increase in a currency supply relative to the number of people using it, resulting in rising prices of goods and services over time
unemployment rate
The number of people actively looking for a job but can't find one
The business cycle
The process of economy booms and busts
Macroeconomics
The study of the entire economy as a whole rather than individual markets
Gross Domestic Product
The sum total of the value of all the goods and services produced in a nation in a specific period of time, usually a year
Recession
When two successive quarters or 6 months show a decrease in the real GDP
Depression
a severe recession
discouraged workers
individuals who would like to work but have given up looking for a job