Shared Flashcard Set

Details

Unit II Review
Equations & Misc.
23
Economics
12th Grade
02/04/2010

Additional Economics Flashcards

 


 

Cards

Term
How does NDP differ from GDP?
Definition
GDP - CFC = NDP
Term
Define Net Exports (Xn).
Definition
(X-M) or (Exports-Imports)
Term
What adjustments need to be made to go from National Income (NI) to GDP?
Definition
NI + IBT + CFC + NFFIEUS = GDP
Term
How do you get Disposable Income (DI)?
Definition

Personal income less personal taxes.  [ PI - PT = DI ]

Term
How do you compute GDP?
Definition
C + Ig + G + Xn
Term
How do you compute NDP?
Definition
GDP - CFC= NDP
Term
How do you compute NI?
Definition
NDP - IBT = NI
Term
How do you compute PI?
Definition
NI - UCP - CIT + SSC = PI
Term
How do you compute DI?
Definition
PI - PT = DI
Term
How is price index computed?
Definition
(Market price of a particular year ÷ Market price of the base year) ×100
Term
What is the difference between nominal and real GDP?
Definition
Nominal GDP is the actual dollar amount you have and is therefore, not adjusted.  Real GDP is the purchasing power of the GDP and is therefore, adjusted according to the inflation/deflation rate.
Term
How do you compute Nominal GDP?
Definition
Units of output × price per unit
Term
How do you compute Real GDP?
Definition
(Nominal GDP × 100) ÷ price index
Term
How do you compute the Output growth of an economy?
Definition
Output growth = (real GDP of a particular year - real GDP of the base year) ÷ (real GDP of the base year) ×100
Term
How do you compute Real GDP per capita?
Definition
Real GDP of a year ÷ population of that year
Term
How do you compute the unemployment rate (UR)?
Definition
(Number of unemployed ÷ labor force) × 100
Term
How do you compute the labor force participation rate (LEPR)?
Definition
(# in labor force ÷ adult population) × 100
Term
How do you compute Consumer price index (CPI)?
Definition
(Weighted cos of base-period items in current-year prices) ÷ (Weighted cost of base-period items in base-year prices) ×100
Term
What is the Consumer Price Index (CPI)?
Definition
It meausre changes in the prices of goods and services commonly bought by consumers.  The index is based on a market basket of approsimately 400 goods and services weighted according to how much the average consumer spent in teh base year. 
Term
How do you compute price change?
Definition
(Change in CPI) ÷ (Beginning CPI) × 100
Term
What three important goals for the economy did the Employment Act of 1946 establish?
Definition

1. Full Employment

2. Price Stability

3. Economic Growth

Term
What are the types of unemployment (5)?
Definition

1. Natural Level of Unemployment ( NRU or Full Employment): most individuals who are willing to work at the prevailing wages in teh economy are employed and the average price level is stable

2. Frictional Unemployment: workers changing jobs and new workers seeking their first jobs

3. Structural Unemployment: mismatch between the skills of the people seeking jobs and the skills required for available jobs.

4. Cyclical Unemployment: insufficient total spending

5. Seasonal Unemployment

 

Term
How do you know if prices are inflated or deflated?
Definition

Inflated: If price index is below 100

 

Deflated: If price index is above 100

Supporting users have an ad free experience!