Macroeconomic Data

13 flashcardsby rikishakennedy
Study these flashcardsFree · spaced repetition · iPhone, Android, Mac & web

All cards

1
Gross Domestic Product (GDP)
The total value of goods and services produced in an economy
2
Limitations
Misses production from the underground economy, only counts final goods and services, includes inventories
3
Economic Activity (Income Approach)
Compensation of employees, other income, corporate profits, net factor income, depreciation
4
National Income Identity
Y=C+I+G+NX
5
Nominal GDP
Using same year prices
6
Real GDP
Using base year prices
7
Price Level
Nominal GDP/Real GDP
8
Converting Quarterly Levels
Annualize a quarterly rate Compute gquarterly = Yq−Yq−1/Yq−1
Compute gannual = 100 × [(1 + gquarterly)4 − 1]
Still a quarterly time series, but expressed in annualized growth rate: quarter-on-quarter (seasonally adjusted) annual rate
9
Computing Yearly Rate Directly
Compute gannual = 100 × [ Yq −Yq−4 ]
Yq−4
Still a quarterly time series, but expressed in annualized
growth rate: year-on-year (seasonally adjusted) annual rate
10
GDP Deflator
100 x Nominal GDP/Real GDP
11
Personal Consumption
100 x Nominal PCE for year y/Real PCE for year y
12
Stock Measure
Have a meaning at a give point in time
13
Flow Measure
Has a meaning within a period
Study all 13 cards for free