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THE MACROMAGNITUDES - Coggle Diagram
THE MACROMAGNITUDES
Gross Domestic Product
GDP: Measures total monetary value of a final good/service produced in a country over a specific period (1 year)
Money flow: Continuous flow of money, not accumulated past wealth
Income=Expenditure: Total income = Total expenditure every transaction has a buyer (spending) and a seller (earning)
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NOMINAL
Current prices, it can rise just because inflation
REAL
Constant prices from a base year, only rises if production rises
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Unemployement
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CATEGORIES
Employed: Worked at least one hour last week, self-employed, vacation/sick leave
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Inactive: Full time students, retirees, discouraged workers
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CPI cost of living
Consumer price index measures inflation, the general increase in prices that rise the cost of living
tracks the price of a fixed "basket" of goods and services bought by a representative consumer, comparing today's price to a base year.
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