GDP and stuff Flashcards
(9 cards)
Definition of GDP
It is the market value of all final goods and services produced in a nation during a period of time usually a year
Types of Unemployment
Structural, Cyclical, Frictional
Structural unemployment
Employees getting replaced because of skills
Frictional Unemployment
Time inbetween jobs, searching for work
Cyclical Unemployment
Unemployment due to a recession
Non-price factors of Demand
- Resource price
- Taxes and subsides
- Prices of related goods
- Technology
- expectation of future
- number of firms
Aggregate Expenditures
Total Spending
Ae= (I+Ca) + MPC(Yd)
Consumer Surplus
The difference between the maximum price a consumer is willing to pay for a product and the actual price that they pay
Producers surplus
the difference between the actual price a producer receives and the minimum acceptable price that consumers would have to pay the producer to make a particular unit of output available
