U.S. unemployment decrease reflects more workforce dropouts

Types of Unemployment

Frictional Unemployment: Means that you're between jobs, or are actively looking for another job (education, choices)
Seasonal Unemployment: Bus drivers, life guards, construction
Cyclical Unemployment: Downturns in business cycle (bad for society and individuals)
Structural Unemployment: Associated with the lack of skill, or declining industry

Equation for inflation: New-Old/Old x 100
Deflation: Decline in general price level.
Disinflation: Inflation rate declines.
Equation for inflation: New-Old/Old x 100
Finding inflation rate using market basket data: Current year-Base year/Base year x 100
Finding inflation rate using price indexes: Current year-Base year/Base year x 100

Nominal GDP VS. Real GDP

• Nominal GDP: is the value of output produced in current prizes 
• It can increase from year to year if output or price increase 
• PxQ
• Real GDP: Value of output produced in constant or base year prices
• It is adjusted for inflation
• Only increases from year to year if the output increases.
• Price Index: 
• price of market basket goods in current  X 100
• price of market basket goods in base 
• GDP Deflator: is always equal to 100/ for years after base year 
• The deflator is greater than 100 for years after the base years
• The deflator is less than 100 for years before the base year 

January 28, 2015

• Expenditure Approach:  method for calculating GDP that totals consumption, investment, government spending and net exports. Although GDP can be calculated through other methods, the expenditure method is the most common.
• C+IG+G+Xn=GDP
• Income: Add up all income earned by households and firms in a single year.

• GDP= W+R+I+P+  Statistical Adjustments 
• Wages- (compensation of employment, salary, pension)
• Rent- (tenancy to landlord, lease payment by a corporation for the use of their space)
• Interest- Amount of money paid by private businesses to the suppliers of loans used to purchase capitol
• Profit- Corporate income taxes, dividends, undistributed corporate offices
• Budget: Government purchases of goods and services + government transfer payments
• Positive Number= Budget deficit
• Negative Number= Budget surplus
• Trade: Exports- imports
• GNP: GDP+Net foreign factor income
• NNP: GDP- Depreciation
• National Income: GDP- indirect business taxes- depreciation- net foreign factor payments
• Disposable Personal Income: NI- personal household taxes+ GTP 

Gross National Product

What is GNP?
 Gross National Product: Is the total value of all final goods and services by citizens of that country on its land or on foreign land.

Gross Domestic Product (GDP)

• Economists collect statistics on production, income, investments, and saving. This is called National Income Accounting.

• The most important measure of growth is GDP. 

GDP: Is the total dollar value of all final goods and services produced within a countries borders within a given year.

What's NOT included in GDP count?
- Intermediate goods
      -No multiple counting
      - Only count final goods
-Second Hand or USED Goods
-Non Market Activity
       -Illegal drugs
       - Babysitting/Volunteering
-Financial Transactions
        -Stocks
        - Bonds
        - Real Estate
-Gifts- Transfer Payments
         -Social Security
         - Scholarships
         - Transfer Payments


What IS Included in GDP count?
-Consumption: 67% of the economy
- Gross Domestic Private Investment
-Government Spending
- Xn: Net Exports/ Imports