Students in introduction to macroeconomics courses are asked to prepare homework about macroeconomics terms. This blog post gives the definitions of basic macroeconomics terms. The list of macroeconomics terms and the definitions are given below. The macroeconomics definitions are given as a summary and detailed information is shared in our blog in Economics category. You can use the comment section in order to ask questions about macroeconomics terms.
The total market value of all the goods and services produced in a country in 1 year.
The three ways of GDP measurement will give the same result. Those ways use different methods to calculate the same value, which is GDP. While calculating GDP by production, we use GDP=C+I+G+NX. For GDP by income, we use GDP=Profits+interests+wages+rent and for GDP by Value added, we use the concept of intermediate values. No matter which way we use, the same result is obtained.
GDP is equal to Consumption+Investment+Government spending+Net exports. If one of those values increases, GDP increases too. If the import decreases net export will increase(NX=X-M), since net export is equal to the difference between export and import, GDP will increase too.
It is a GDP measure that is adjusted to inflation and it reflects the value of all the goods and services produced in a country in terms of a base year.
It is a GDP measure which is not adjusted for inflation.
The price added to the price of the homogenous product while some other products are being added to the homogenous product, to produce a different product.
The mean value of the current pricess of all the goods and services in the economy.
It is the rate of increase of the price of the goods and services in a country. For instance, if the inflation is 10% in a counry, the citizens will pay 1.1 TL for 1 kg of potatoes, which normally costs 1TL in the case of no inflation.
It shows a decrease in the rate of inflation. The prices of the goods and services rises in the case of disinflation but with a lower rate of increase.
It is the decrease in the price level of all the goods and services in the country. If there is deflation in a country, the citizens will be paying less Money for every good and service they use.
The number of people who are ready to work in a country. It includes both the employed people and the unemployed people. In that case, unemployed means who does not have a job but looking for one.
The percentage of the total labor force who doesn’t have a job but seeking to find one.
A person who is in the legal age of working, able to work and needs a job but is not seeking for job after a period of unemployment.
The period of time between jobs when the workers are changing their jobs.
Occurs when less production is needed. As a result of less production, fewer workers are needed so the masses of people are unemployed to make a balance. When there is not enough aggregate demand in the economy, everyone who wants to work can not be provided with jobs.
When the quantity of labor is beter than that of demanded, since the number of people who seeks for work and the number of jobs are not equal, structural unemployment occurs.
The smallest unemployment rate that an economy can sustain where inflation is stable.