## Friday, January 21, 2011

### POST 21-VOCAB

National Income Accounting- Process used for tracking production, income, and consumption in a nations economy.

Gross Domestic Product- Total value of all final goods and services produced within a country in a given year.

Output Expenditure Model- A method of computing the GDP by adding the total value of consumer and government spending...

Personal Consumption Expenditure- Total spending by consumers for durable goods, nondurable goods, and services during a specified period of time.

Gross Investment- Total value of private spending in the economy for capital assets.

Nominal GDP- The value of a nations GDP at the current prices of the period being measured.

Real GDP- The value of a nations GDP after it has been adjusted for inflation.

Price Index- A set of statistics that allows economists to compare prices over time.

Underground Economy- Illegal economic activities or unreported legal activities that are not accounted for in national income measures.

Gross National Product- Total value of all final goods and services produced with factors of production owned by citizens of a different country.

Business Cycle- A recurring pattern in economic activity that is characterized by alternating periods of expansion and contraction.

Expansion- A period of the business cycle during which economic activity is increasing toward a peak.

Peak-The point of the business cycle during which employment production and wages are at their highest.

Contraction- A period in the business cycle during which business activity slows down and overall economic indicators decline.

Recession- Substantial and general decline in over all business activity over a signifigant period of time.

Depression- A prolonged and severe recession.

Trough-The lowest point of the business cycle.

Leading Indicators- Set of economic factors that anticipate the expansions and contractions of the business cycle from one month up to two years before similar changes in overall economic activity occur.

Coincident Indicators- Set of economic factors that move up or down with the economy.

Lagging Indicators- Set of E.F that help economicts predict the duration of economic up or downturns.

Real GDP Per Capita-The \$ value adjusted for inflation of all final goods and services produced  per person  in an economy in a given year.

Labor Productivity- Measure of how much each worker produces in a given period of time.

Productivity Growth- Increase in output per worker per hour worked.

Capitol-to-labor- ratio- Amount of capital resources available per worker.

Capital Deepening- The increasing of capital resources at a faster rate than the increasing of the labor force

## Wednesday, January 5, 2011

### POST 15

Leading: An indicator that signals when the economy will rise.
Coincident: This indicator occurs at approximately the same time as the market changes.
Lagging- This type of indicator follows an event.

## Tuesday, January 4, 2011

### POST 13

The process macroeconomists use to track production, income, and consumption is known as national income accounting and provides information about a country's economic activities.

The most widely used NIPA is gross domestic product.

To actually compute GDP, economists use the output- expendature model.

Personal consumption expenditures include durable goods, nondurable goods, and services.

Gross investment is the total value of all capital goods produced in a given country in one year as well as changes in the dollar value of business inventories.
Government transfer payments are not included when calculating government purchases.

A price index is a set of statistics that allows economists to compare price over time.

Illegal activities and unreported legal activities are part of the underground economy.

Barter transactions, housework, and do-it-yourself home repairs are examples of nonmarket activities.

Inderect taxes are taxes included in the final price of goods and services.

### POST 12

GNP is GDP + total capital gains from foreign investment. GDP gives a total view of each country's economic position, but GNP shows domestic contribution to GDP to foreign investment/income.

## Monday, January 3, 2011

### POST 11 - Using the 4x3technique

GDI is the amount of goods and services produced in a year, or the value of everything made that year within the country.

$AD = C + I + G + (X-M) \$
where
• $C \$ is consumption (may also be known as consumer spending) = ac + bc(YT),
• $I \$ is Investment,
• $G \$ is Government spending,
• $NX = X - M \$ is Net export,
• $X \$ is total exports, and
• $M \$ is total imports = am + bm(YT).

### POST 10 - React to reading:

Macroeconomics is changes in unemployment, income, rate of growth gross domestic product, inflation and price levels. I am sooooo interested in macroeconomics, i just want to learn everything i can about it. I couldnt summarize what i want to learn into 3 things because i want to know everything.

### Post 9: Malcolm Gladwell Speech

Malcom Gladwell has a tallent for identifying patterns in marketing strageties that largecorporations have spent years trying to figure out. He realized how unstead of turning each flavor or type of product that each consumer into a product line, that it should be divided into sections.