IndietroMacroeconomics Key Concepts and Definitions
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Termini in questo insieme (30)
Producing units of the economy. Example: Nike produces shoes. Not an example: A household buying shoes is consumption, not production.
Consuming units that also supply resources. Example: A family buys groceries and supplies labor. Not an example: A business producing groceries is a firm, not a household.
Firms supply goods and services. Example: A restaurant sells meals. Not an example: Firms do not demand their own output in the output market.
Households demand goods and services. Example: A student buys a laptop. Not an example: Households generally demand output, not supply it.
Households supply resources such as labor. Example: A worker supplies labor to a company. Not an example: Buying a product is an output-market action.
Firms demand resources such as labor. Example: A store hires workers. Not an example: Selling a product is output supply, not input demand.
Households supply labor; firms/government demand labor. Example: A student applies for a job; a firm hires. Do not reverse supplier and demander.
All other relevant factors are held constant. Example: Study a price change while income stays fixed. It does not mean every real-world factor literally stays fixed.
Price rises → quantity demanded falls, other things equal. Example: Movie tickets get cheaper, so more tickets are bought. Demand shifts from income are not law-of-demand movements.
Price and quantity demanded move inversely. Example: Price rises while quantity demanded falls. Direct/positive relationship is the supply rule, not demand.
Amount consumers buy at one particular price. Example: At \$3, buyers want 100 units. Do not confuse one point on the curve with the entire demand curve.
Own-price change causes movement along demand curve. Example: Coffee price falls; more coffee is purchased. Income changing shifts demand; it is not a change in quantity demanded.
A non-price determinant shifts the whole demand curve. Example: Income rises for a normal good → demand shifts right. The good's own price changing does not shift demand.
Income rises → demand rises. Example: Restaurant meals may be a normal good. Do not apply this rule to an inferior good.
Income rises → demand falls. Example: Consumers buy less instant noodles as income rises. Inferior does not mean low quality; it describes income response.
Goods used in place of each other. Example: Pepsi and Coca-Cola. Hot dogs and buns are complements, not substitutes.
Goods commonly used together. Example: Printers and ink cartridges. Pepsi and Coke are usually substitutes, not complements.
Price rises → quantity supplied rises, other things equal. Example: Higher market price encourages more output. Inverse price-quantity supplied relationship is not the law of supply.
Amount producers offer at one particular price. Example: At \$10, firms offer 500 units. Do not confuse one point with the whole supply curve.
A non-price determinant shifts the whole supply curve. Example: New technology lowers costs → supply shifts right. The product's own price changing does not shift supply.
Quantity demanded equals quantity supplied. Example: Quantity demanded = 40 and quantity supplied = 40.
Market value of final goods/services produced domestically in a period. Example: A new car produced in the U.S. counts in U.S. GDP. Used goods are excluded.
GDP = C + I + G + NX. Example: Add consumption, investment, government purchases, net exports. Transfer payments are not government purchases.
Household spending on final goods/services. Example: A household buys a new TV. A firm's new machine is investment, not consumption.
Business capital, residential construction, inventory investment. Example: A firm buys a new machine. Buying stocks is not GDP investment.
Current quantities × current prices. Example: 2026 output valued at 2026 prices. Base-year prices are used for real GDP.
Current quantities × base-year prices. Example: 2026 quantities valued at base-year prices. Do not use current prices for real GDP.
(Nominal GDP / Real GDP) × 100. Example: 1000/800 × 100 = 125. Do not reverse numerator and denominator.
Sustained rise in the overall price level. Example: Price index rises from 120 to 126. One product becoming more expensive is not economy-wide inflation.
Standard official unemployment measure. Formula: (Unemployed / Labor force) × 100. Example: 50 unemployed / 1000 labor force = 5%.