Term Definition Paper

Term Definition Paper

“Term Definition”
Sonya Spencer
University of Phoenix
This paper is designed to define the terms (GDP) gross domestic product, real GDP, unemployment rate, inflation rate and interest rate. This is basically microeconomics and how they interact in our world. We will discuss how it affects our household, government and business. Economics is truly relevant in the world today.

“Gross Domestic Product”

GDP is defined as the value-added of all goods and services produced in a given period of time within a country. The measurement of GDP can be approached from three angles: value added by industry, final expenditures, and factor incomes.

“Real (GDP) Gross Domestic Product”
GDP is usually expressed in terms of current prices in national currency units, or in real terms (real GDP) after removing the effects of price change to reflect the volume of production in the economy. For international comparisons, GDP is also expressed in a common currency such as U.S. dollars using purchasing power parity exchange rates.

“Unemployment Rate”
Unemployment is defined as by the Bureau of Labor Statistics (BLS) as people who do not have a job, have actively looked for work in the past four weeks, and are currently available for work. Also, people who were temporarily laid off and are waiting to be called back to that job are counted as unemployed.

“Inflation Rate”
The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the...

Similar Essays