Economic Fundamentals Vocabulary

amount of a product available to the market; stock

• supply

• demand

• Surplus

• Shortage

consumer’s willingness to buy a product

• demand

• surplus

• supply

• Shortage

occurs when a product is produced in larger quantities than is demanded

• surplus

• demand

• supply

• shortage

occurs when a product is demanded in larger quantities than it is produced

• shortage

• surplus

• supply

• demand

occurs when a product is demanded in the same quantity it is produced

• Equilibrium

• demand

• supply

• Shortage

measure of an country’s output of goods and services within its borders

• Gross Domestic Product (GDP)

• Equilibrium

• Supply

• Demand

measure of change in the value of a currency; rate of rising prices in a country

• Rate of inflation

• Equilibrium

• Gross Domestic Product

• Consumer Price Index

measure of the change in the prices of consumer goods; used to measure

inflation; also known as cost-of-living index

• Consumer Price Index (CPI)

• Rate of Inflation

• Gross Domestic Product (GDP)

• Demand

measure of the change in the prices of wholesale goods; used to measure

inflation; formerly known as the wholesale price index

• Producer Price Index (PPI)

• Gross Domestice Product (GDP)

• Consumer Price Index (CPI)

• Supply

measure of the number of people without jobs

• Unemployment Rate

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)

• Business Cycle