Economic Indicators

Gross Domestic Product

GDP per Capita

Gross National Product

What is not calculated in the GDP

Real v. Nominal Wages

+REAL =

NOMINAL=

Base Year

Real and Nominal Interest Rates

Real: Accounts 4

Inflation rate

Nominal: Rate not adjusted 4 inflation

Real and Nominal GDP

GDP Deflator

w/

100Nominal

Real

Indicator of

CPI = Consumers Price Index

Market Basket: items used to track inflation

Inflation rate

increase in price level of goods /

services

THE COSTS OF INFLATION

Deflation

Unemployment Rate (looking but can’t find work)

Labor Force Participation Rate

% of population--16 +

older

Discouraged Workers

The Underemployed

Structural Unemployment

Cyclical UnemploymentLow points/ fluctuations in cycle = cyclical unemployment

THE NATURAL RATE OF UNEMPLOYMENT• …normal rate of employment which fluctuates…

Includes…