E.5.1+Define+aggregate+supply+and+demand,+Gross+Domestic+Product+(GDP),+economic+growth,+unemployment,+and+inflation.

 =Define aggregate supply and demand, Gross Domestic Product (GDP), economic growth, unemployment, and inflation.=



**//Focus Question: What is aggregate supply and demands, Gross Domestic Product, economic growth, unemployment, and inflation?//**

 * Aggregate Supply and Demand **

General Explanation: In general terms, as the supply for a product increases, the demand for a product decreases. Vice versa, if the supply for a product decreases, the demand for a product increases. For example, if the bread market were to overproduce loaves of bread (increasing the supply), buyers would be in low demand for bread (decrease in demand), because they know bread is available in surplus. Whereas if the bread market were to stop making loaves of bread (decreasing the supply), then the demand for bread would increase because buyers know there is a shortage on bread.

> aggregate demand in terms of the price level and output or income, it is possible to analyze the effects of other variables, like the interest rate, on aggregate demand through an aggregate demand equation.
 * __[|Aggregate Demand]__ represents the total demand for goods and services in an economy. By defining


 * __[|Aggregate Supply]__ is the total of all goods and services, including exports and imports, supplied at every price level within a national economy during a given time period.

See the following helpful videos for further explanation:

[|Demand and Supply Explained - Econ 2.1]

[|Demand and Supply Explained - Econ 2.2]

For more information, refer to the //**Economics Study Guides**// on [|SparkNotes].


 * Gross Domestic Product (GDP) **

General Explanation:
 * //Gross Domestic Product (GDP)//** is the total value of goods produced and services provided in a country during one year.

View the follow informative [|video] explaining GDP in the United States for further explanation:

[|03 Understanding Gross Domestic Product]

[| What is GDP?]


 * Economic Growth **

General Explanation:  View the following Video from Khan Academy showing the difference between nominal and real GDP as a measure of actual productivity growth.
 * //Economic Growth//** is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. The growth can be measured in two terms: nominal or real.
 * __[|Nominal Economic Growth]__ includes the inflation of the dollar.
 * __[|Real Economic Growth]__ is adjusted to account for the inflation of the dollar.

 
 * Unemployment **

General Explanation:
 * //Unemployment//** is defined as the state of an individual looking for a paying job but not having one. In economics, unemployment does not include full-time students, the retired, children, or those who are not actively looking for a paying job.

Link from Bureau of Labor Statistics with current unemployment numbers and unemployment numbers going as far back as 1948.


 * //Inflation//** is the persistent, substantial rise in the general levelof prices related to an increase in the volume of money andresulting in the loss of value of currency.

The [|Inflation Calculator] adjusts any given amount of money for inflation, according to the Consumer Price Index, from 1800 to 2007.



View the following explanation from an up and coming female Economics Professor:

[|Unemployment and the Unemployment Rate]