Master this deck with 19 terms through effective study methods.
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Studies the economy as a whole, focusing on aggregate phenomena.
Full employment, price stability, and economic growth.
Total market value of all finished goods and services produced in a country.
Nominal GDP is measured at current prices; Real GDP adjusts for inflation.
Calculates GDP by summing consumption, investment, government spending, and net exports.
Does not account for income distribution, environmental degradation, or unpaid work.
Number of unemployed persons as a percentage of the total labor force.
Workers transitioning between jobs or searching for their first job.
Rate of unemployment at full productive potential, excluding cyclical unemployment.
Rate at which the general level of prices rises, reducing purchasing power.
Occurs when aggregate demand grows faster than aggregate supply.
Includes redistribution effects, menu costs, shoe-leather costs, and uncertainty.
Expansion, peak, contraction (recession), and trough.
Relationship between overall price level and total quantity of goods and services produced.
Changes in consumption, investment, government spending, or net exports.
Changes in input costs like wages and raw material prices.
Represents the economy's potential output, unaffected by price level.
Increases government spending or reduces taxes to boost aggregate demand.
Describes how an initial change in spending leads to a larger total change in income.