ECON 200 Chapter Notes - Chapter 26-27: Market Basket, Real Income, Deflation
Document Summary
Real gdp per capita: the amount of real output per person in a country. Modern economic growth: characterized by sustained and ongoing increases in living standards that cause dramatic increases in the standard of living within less than a single human lifetime. Efficiency factor: to reach full production potential, an economy must achieve economic efficiency as well as full employment. Human capital: the knowledge and skills that make a worker productive. Unemployment rate = (unemployed / labor force) * 100. Frictional unemployment: search unemployment and wait unemployment (workers who are either searching for jobs or waiting to take jobs in the near future. Inflation: a rise in the general price levels. Per unit production cost = total input cost / units of output. Nominal interest rate: interest rate * inflation premium.
