Individual Assignment Week 2 Part 1

340 words - 2 pages

Individual assignment week 2

Describe the following terms in your own words.
Gross domestic product (GDP) Definition: The monetary value of all the finished (final) goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. My own words: A countries value of products within the nation that is measured within a specific amount of time, to gauge the standard of living.
Real GDP definition: An inflation-adjustment measure ...view middle of the document...

 Also known as "current dollar GDP" or "chained dollar GDP." My own words: When the inflation figure is not accounted for, making the GDP look better than it is in reality.
Unemployment rate definition: The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. My own words: The unemployment rate is an indicator of the labor work force as a whole that is not working but actively seeking employment.
Inflation rate definition: The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum. My own words: The amount of how much more money you will need pay when you buy an item due to rising costs.
Interest rate definition: The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. My own words: Based annually an interest rate is the amount of what it will cost to have the amount financed or loaned for and asset.

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