Standard 5 National Economic Performance

Standard 5 National Economic Performance Gross Domestic Product (GDP) ️️the market value of all final goods and services produced within a nation in a given time period Nominal GDP ️️the gross domestic product stated in terms of current value of goods and services Real GDP ️️the gross domestic product corrected for changes in prices from year to year Nonmarket Activities ️️services that have potential economic value but are performed without charge Underground Economy ️️market activities that go unreported because they are illegal or because those involved want to avoid taxation Business Cycle ️️the series of growing and shrinking periods of economic activity, measured by increases or decreases in GDP Economic Growth ️️an increase in a nation's real GDP Recession ️️a prolonged economic contraction lasting two or more quarters (six months or more) Depression ️️an extended period of high unemployment and reduced business activity Stagflation ️️a period during which prices rise at the same time that there is a slowdown in business activity Real GDP per Capita ️️the real GDP divided by total population Unemployment Rate ️️the percentage of the labor force that is jobless and actively looking for work Underemployment ️️the condition when people work at jobs for which they are overqualified or that do not utilize their skills Frictional Unemployment ️️the temporary unemployment of workers moving from one job to another Seasonal Unemployment ️️unemployment linked to seasonal work Structural Unemployment ️️unemployment that exists when the available jobs do not match the skills of available workers Cyclical Unemployment ️️Unemployment caused by the part of the business cycle with decreased economic activity Poverty(Level) ️️the situation in which a person's income and resources do not allow him or her to achieve a minimum standard of living Poverty Rate ️️the percentage of people living in households that have incomes below the poverty threshold Inflation ️️a sustained rise in the general price level, or a sustained fall in the purchasing power of money Consumer Price Index ️️a measure of changes in the prices of goods and services that consumers commonly purchase Producer Price Index ️️a measure of changes in wholesale prices Inflation Rate ️️the rate of change in prices over a set period of time Hyperinflation ️️a rapid uncontrolled rate of inflation in excess of 50% Deflation ️️a decrease in the general price level Demand-Pull Inflation ️️a condition that occurs when total demand rises faster than the production of goods and services Cost-Push Inflation ️️a situation in which increases in production costs push up prices Wage-Price Spiral ️️a cycle that begins with increased wages, which lead to higher production costs, which in turn result in higher prices, which results in demands f