Running head: Macroeconomic Terms

Macroeconomic Terms Student Name Principles of Macroeconomics/ECO372 Date Instructor Name

Macroeconomic Terms Macroeconomic Terms Gross domes ic produc !G"P# is a represen a ion of a Coun r$%s o al mar&e 'alue in a one($ear period) This o al mar&e 'alue is an aggrega e of all he final goods and ser'ices he Coun r$%s econom$ has produced for ha one($ear period !Colander* 2+1+#) ,hen he G"P is calcula ed for e-is ing prices i is &no.n as he /ominal G"P !Colander* 2+1+#) This is done o

compare differen $ears in a 'alue(0alanced manner in order o iden if$ gro. hs and reduc ions in ou pu and 'alue more accura el$) To find he real G"P one ad1us s he nominal G"P for infla ion !Colander* 2+1+#) The real G"P is used for comparing ac ual mar&e 'alues for differen periods) The unemplo$men ra e is found 0$ calcula ing he percen age of people in a gi'en econom$ .ho are a0le o .or& 0u are no .or&ing) 2nfla ion ra e is he amoun in .hich price le'els con inuall$ rise) This indica es ho. he 'alue of he dollar is decreasing 0ased on i s purchasing po.er) The price ha is paid o use a financial asse is &no.n as he in eres ra e !Colander* 2+1+#) This is normall$ a percen age of he financial asse amor i3ed for he leng h in .hich i is 0orro.ed)

Macroeconomic Terms References Colander* ") C) !2+1+#) Macroeconomics !4 h ed)#) 5os on* M6: McGra.(7ill/2r.in)