Economic Terms

Gross Domestic Product (GDP) Gross Domestic Product (GDP) is the value of goods a certain place produces in a specific amount of time.

Gross Domestic Product - GDP. (n.d.). Retrieved from http://www.investopedia.com/terms/g/gdp.asp

Real GDP Real GDP factors the inflation rate in a specific year to give a more accurate description of the production level of that country.

Real Gross Domestic Product (GDP). (n.d.). Retrieved from http://www.investopedia.com/terms/r/realgdp.asp

Nominal GDP The nominal GDP is not adjusted for inflation, it is the dollar amount during that specific period. Nominal GDP. (n.d.). Retrieved from http://www.investopedia.com/terms/n/nominalgdp.asp

Unemployment rate The unemployment rate is the number of people not working, but actively seeking employment. divided by the number of people currently working. Unemployment Rate. (n.d.). Retrieved from http://www.investopedia.com/terms/u/unemploymentrate.asp

Inflation rate Infltation rate is when more money is printed, causing the value of the currency to drop.

Inflation. (n.d.). Retrieved from http://www.investopedia.com/terms/i/inflation.asp

Fiscal Policy Fiscal policy are the choices the government makes every year to set a budget for the country.

Fiscal Policy. (n.d.). Retrieved from http://www.investopedia.com/terms/f/fiscalpolicy.asp

Monetary Policy

Monetary Policy defines the way the Federal Reserve Bank decides to use the money supply of the country. Monetary Policy. (n.d.). Retrieved from http://www.investopedia.com/terms/m/monetarypolicy.asp

Aggregate Demand (AD) Curve The aggregate demand