Macroeconomic Terms

ECO/372 Version 5
1
Week 1 Vocabulary
Constance Punch
ECO/372
September 15, 21!
"lan #e$%eck
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Macroeconomic Terms
ECO/372 Version 5

University of Phoenix Material

Macroeconomic Terms
!n the middle col"mn of the follo#ing table$ quote the definitions of the terms listed in the left
col"mn "sing the co"rse text$ the %"rea" of &conomic Analysis
'www.bea.gov/glossary/glossary.cfm($ or %"rea" of )abor *tatistics
'www.bls.gov/bls/glossary.htm. %e s"re yo" "se proper in+text citations #ith yo"r
,"otes.
!n the col"mn on the right$ efine those terms in yo"r o#n #ords.
Term -efinition from text$ %"rea" of
&conomic Analysis$ or %"rea" of
)abor *tatistics
-efinition in yo"r o#n #ords.
.ross -omestic Prod"ct '.-P( The total mar/et val"e of all final
goods and services prod"ced in
an economy in a one+year
period.
0ver a period of a year$ the
.ross -omestic Prod"ct is the
mar/et val"e of goods or
services rendered.
1eal .-P The total amo"nt of goods and
services prod"ced$ ad2"sted for
price+level changes
The total of !tems and services
that have their prices ad2"sted
3ominal .-P The amo"nt of goods and
services prod"ced meas"red at
c"rrent prices
The gross price of prod"cts that
haven4t #asn4t ad2"sted for
inflation.
Unemployment rate An "nemployment rate is
meas"red by dividing the n"mber
of "nemployed individ"als by the
n"mber of people in the civilian
labor force and m"ltiplying by
155
Unemployment is calc"lated as a
percentage by dividing ho# many
individ"als are "nemployed by all
persons in the labor force.
!nflation rate There is no real definition in any
of the st"dies for the #ee/.
This is the rate that prices rise or
fall for services or items.
6iscal Policy The deliberate change in either
government spending or taxes to
stim"late or slo# do#n the
economy. Also$ the changing of
taxes and spending to affect the
level of o"tp"t in the economy.
This is #here the government
reven"e and spending is "sed to
infl"ence the economy.
Monetary Policy A policy of infl"encing the 7here someone controls the
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Macroeconomic Terms
ECO/372 Version 5
8
economy thro"gh changes in the
ban/ing system4s reserves that
infl"ence the money s"pply and
credit availability in the economy.
s"pply of money ' ban/s( and
controls the rate of interest in
order to help #ith gro#th of the
economy.
Aggregate -emand 'A-( C"rve A c"rve that sho#s ho# a
change in the price level #ill
change aggregate expendit"res
on all goods and services in an
economy.
This is the relationship bet#een a
price level and the ,"ality of ho#
m"ch is p"t o"t.
Copyright XXXX by University of Phoenix. All rights reserved.
Macroeconomic Terms
ECO/372 Version 5
9
1eferences
-avid C Colandra. '518(. &conomics. 1etrieved from -avid C Colandra$ Macroeconomics #ebsite.
Copyright XXXX by University of Phoenix. All rights reserved.