Macroeconomic Terms
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Macroeconomic Terms
Describe the following terms in your words.
Term
Definition
Gross Domestic Product (GDP)
Is the total market value of a country’s goods and services been produced or made within that country for a precise period of time. It is also known as the toatal value of a nation’s goods and services produced domestically in that particular year.
Real GDP
Is the calculation of an economy which involves the quantifying of inflation on how the market value of goods and services is accustomed at a certain period of time.
Nominal GDP
Is the calculation of how a gross domestic product of the current market prices is assessed, and how the changes in market pricestook effect during that present year by inflation or deflation.
Unemployment rate
The estimation of the total number of people who are unemployed, and are still seeking for a job. For example, if the percentage of a nation’s unemployment rate drops down drastically.
Inflation rate
This is an increase in the overall market and price level of goods and services in a nation’s economy over a period of time.
Fiscal Policy
Is when government regulates the spendings, taxes and expenditures to monitor the country’s economy level.
Monetary Policy
Monetary policy is how interest rates and money supply from central bank is regulated, in order to control inflation and stabilize currency.
Aggregate Demand (AD) Curve
The total number of demand for preferred goods and services by everyone within a national economy. It is also known as the government, investment, consumption expenditures and net exports.
Macroeconomic Terms
Describe the following terms in your words.
Term
Definition
Gross Domestic Product (GDP)
Is the total market value of a country’s goods and services been produced or made within that country for a precise period of time. It is also known as the toatal value of a nation’s goods and services produced domestically in that particular year.
Real GDP
Is the calculation of an economy which involves the quantifying of inflation on how the market value of goods and services is accustomed at a certain period of time.
Nominal GDP
Is the calculation of how a gross domestic product of the current market prices is assessed, and how the changes in market pricestook effect during that present year by inflation or deflation.
Unemployment rate
The estimation of the total number of people who are unemployed, and are still seeking for a job. For example, if the percentage of a nation’s unemployment rate drops down drastically.
Inflation rate
This is an increase in the overall market and price level of goods and services in a nation’s economy over a period of time.
Fiscal Policy
Is when government regulates the spendings, taxes and expenditures to monitor the country’s economy level.
Monetary Policy
Monetary policy is how interest rates and money supply from central bank is regulated, in order to control inflation and stabilize currency.
Aggregate Demand (AD) Curve
The total number of demand for preferred goods and services by everyone within a national economy. It is also known as the government, investment, consumption expenditures and net exports.