SOL definition
Refers to the material and non-material well-being of an individual
MSOL n NMSOL
Quantity of G&S consumed by an average individual where nMSOL refers to quality of life
Real GDP
Refers to the total money value of all final G&S produced within a country’s geographical boundary over a year, adjusted for price changes
GNI
the sum of gross factor incomes (incomes arising from the involvement in production processes or ownership of assets that may be needed for production) receivable by resident units.
Nominal GDP
Measures the value of the economy’s
final output using prices prevailing in
the market in the current year.
Equation relating Real and Nominal
Real GDP = Nominal GDP - inflation rate
Disposable income(+formula)
Income available to HH for consumption and saving
DI=NI - direct taxes + transfers
Calculate GDP per capita
GDP - population growth
Natural rate of UN
minimum level of unemployment that exists even when the economy is healthy and experiencing full employment, it is the sum of the structural and frictional unemployment rates
UN rate
UN refers to indivs who are w&a to work and actively seeking employment but are unable to find jobs, calculated as the % of total no. of UN people divided by labour force.
CPI
Weighted average of prices of a specific basket of consumption goods and services commonly purchased by residential households
