Hi,
Some terms seen constantly in the news need defining. Remember, Economics is part of the Social Sciences and it is a major field of study and assumption so we will not be covering it all. However, there are many sites on the Internet you can use through Google, Bing, etc. that will fill you in on anything I don't cover. One list of definitions that I favor is "A Journalist's Guide to Economic Terms" because the definitions are short and sweet. It does not cover all of them.
Most often seen in the newspapers: GDP (I define it as G.D. POLITICS, not in the economics dictionary) GROSS DOMESTIC PRODUCT is the value of all goods AND services within the United States (or any other country) during (usually) a year. It is a government measurement by output and reported by the US Bureau of Economic Analysis.
There is also REAL GDP (also called CONSTANT GDP) which is the total market value, measured by constant price, of all goods and services with the US (or any other economy) usually in one year.
Why the difference? Well again we are dealing with assumption here. The difference is that REAL GDP is measured in CONSTANT PRICES FOR THE YEAR and ADJUSTS FOR INFLATION for the year. You might want to compare both if checking on them.
SEE! That's why my definition of GDP is better. It's all based on G.D.POLITICS and the POLITICIANS who ARE doing the analysis???!!!!!!!!!! What to believe??? My Dad used to say when listening to a salesman (and believe me the Government is just that) take what the salesman says, halve it (or double it as the case may be) ADD OR DOUBLE 30% then factor in how fast talking and glib the salesman appears and deduct 10% (or add 10%). Seems reasonable. As reasonable as some of these figures.
GDP DEFLATOR: A PRICE INDEX based on the calculation of (RGDP) real gross domestic product and used as an indicator of average prices in the economy in REAL dollars and NOMINAL dollars (dollar amount without inflation adjustment). PULEEZZZ.....NOMINAL DOLLARS???? I ASSUME that's what's left after the IRS (Internal Ruining Service) gets through with you????!!!!!!!!!
This more fun than usual!
GNP (GROSS NUMDUM PREDICTORS) GROSS NATIONAL PRODUCT was the total market value of all goods and services produced by the citizens of the US economy (or any other) in a year, until it was replaced by GDP in the 1990s. Obviously OUT OF FAVOR like the ELECTORATE lately.
We should review HYPOTHESIS: a reasonable proposition about the workings of the world inspired by supposition which may or may not be true. It's essentially a prediction or theory from observation. It is supposedly tested against REAL? WORLD data and if supported over and over again becomes a principle. The key to this is the QUALITY of the TESTING.
SCIENTIFIC METHOD is called into discussion to sway folks who are dubious. It is a STRUCTURED method of investigation by testing and verification of a HYPOTHESIZED RELATIONSHIP. It is an act of discovery for exploring phenomena so that they can be better understood.
That's like what is nominally called the SEX act before marriage; considerable testing may prove unrelated to understanding the MARRIAGE act. After all it is still theory.
ECONOMIC ANALYSIS is using the scientific method in a systematic manner for an end result which may lead to combining concepts that leads to an analysis of the combinations ad infinitum (LATIN for never ending).
COMPARATIVE STATISTICS is the primary analytical technique used in the study of Economics. Used a great deal in observing markets and demand and supply curves. A tool used for Stock market ANALYSIS and you know the consistency of the stock market.
YOU'RE PROBABLY SAYING BY NOW: Why should I learn this if it's not about REALITY?????!! because YOUR POLITICIANS LIVE BY IT and so your bread and butter is gained or lost by their actions. PAY ATTENTION to their methods and you can gain through understanding the WHY and WHEREFORE!!!!!!!!!
STATISTICAL DISCREPANCY: The OFFICIAL (do you like that admission???) adjustment done to help equalize an income and expenditure approach to measuring the GDP. Balancing those "supposed" figures is a problem. It's a budget with an arbitrary percdentage left open for miscellaneous. That way the budget is always met.
Like having a checking account where the bank out of the goodness of their heart provides you with an open account amount and the flow of money is endless????!!!! No budget problems there!
The aforementioned (BEA) BUREAU OF ECONOMIC ANALYSIS. A Government agency in the Department of Commerce compiles and reports all the assorted measurements and data including national income and production as well as good old GDP. The problem here is that Economists rely heavily on BEA for data in their analysis. Does a MISTAKE here mean BEA (BAD ECONOMY ABUSE)???!!! UH OH.
In the event you learn all this stuff on Economics, be prepared for terms to OBFUSCATE (befog) you more. One is CETERIS PARIBUS (Latin) means OTHER THINGS BEING EQUAL. It is used to isolate one factor from all others in order to observe the results. It is supposed to "un-obfuscate" (lift the fog from) whatever theory they have. Feel free if you want to apply CETERIS PARIBUS to this blog to find out if you learned anything??????!!!!!!!!
Cheers, Connie
Some terms seen constantly in the news need defining. Remember, Economics is part of the Social Sciences and it is a major field of study and assumption so we will not be covering it all. However, there are many sites on the Internet you can use through Google, Bing, etc. that will fill you in on anything I don't cover. One list of definitions that I favor is "A Journalist's Guide to Economic Terms" because the definitions are short and sweet. It does not cover all of them.
Most often seen in the newspapers: GDP (I define it as G.D. POLITICS, not in the economics dictionary) GROSS DOMESTIC PRODUCT is the value of all goods AND services within the United States (or any other country) during (usually) a year. It is a government measurement by output and reported by the US Bureau of Economic Analysis.
There is also REAL GDP (also called CONSTANT GDP) which is the total market value, measured by constant price, of all goods and services with the US (or any other economy) usually in one year.
Why the difference? Well again we are dealing with assumption here. The difference is that REAL GDP is measured in CONSTANT PRICES FOR THE YEAR and ADJUSTS FOR INFLATION for the year. You might want to compare both if checking on them.
SEE! That's why my definition of GDP is better. It's all based on G.D.POLITICS and the POLITICIANS who ARE doing the analysis???!!!!!!!!!! What to believe??? My Dad used to say when listening to a salesman (and believe me the Government is just that) take what the salesman says, halve it (or double it as the case may be) ADD OR DOUBLE 30% then factor in how fast talking and glib the salesman appears and deduct 10% (or add 10%). Seems reasonable. As reasonable as some of these figures.
GDP DEFLATOR: A PRICE INDEX based on the calculation of (RGDP) real gross domestic product and used as an indicator of average prices in the economy in REAL dollars and NOMINAL dollars (dollar amount without inflation adjustment). PULEEZZZ.....NOMINAL DOLLARS???? I ASSUME that's what's left after the IRS (Internal Ruining Service) gets through with you????!!!!!!!!!
This more fun than usual!
GNP (GROSS NUMDUM PREDICTORS) GROSS NATIONAL PRODUCT was the total market value of all goods and services produced by the citizens of the US economy (or any other) in a year, until it was replaced by GDP in the 1990s. Obviously OUT OF FAVOR like the ELECTORATE lately.
We should review HYPOTHESIS: a reasonable proposition about the workings of the world inspired by supposition which may or may not be true. It's essentially a prediction or theory from observation. It is supposedly tested against REAL? WORLD data and if supported over and over again becomes a principle. The key to this is the QUALITY of the TESTING.
SCIENTIFIC METHOD is called into discussion to sway folks who are dubious. It is a STRUCTURED method of investigation by testing and verification of a HYPOTHESIZED RELATIONSHIP. It is an act of discovery for exploring phenomena so that they can be better understood.
That's like what is nominally called the SEX act before marriage; considerable testing may prove unrelated to understanding the MARRIAGE act. After all it is still theory.
ECONOMIC ANALYSIS is using the scientific method in a systematic manner for an end result which may lead to combining concepts that leads to an analysis of the combinations ad infinitum (LATIN for never ending).
COMPARATIVE STATISTICS is the primary analytical technique used in the study of Economics. Used a great deal in observing markets and demand and supply curves. A tool used for Stock market ANALYSIS and you know the consistency of the stock market.
YOU'RE PROBABLY SAYING BY NOW: Why should I learn this if it's not about REALITY?????!! because YOUR POLITICIANS LIVE BY IT and so your bread and butter is gained or lost by their actions. PAY ATTENTION to their methods and you can gain through understanding the WHY and WHEREFORE!!!!!!!!!
STATISTICAL DISCREPANCY: The OFFICIAL (do you like that admission???) adjustment done to help equalize an income and expenditure approach to measuring the GDP. Balancing those "supposed" figures is a problem. It's a budget with an arbitrary percdentage left open for miscellaneous. That way the budget is always met.
Like having a checking account where the bank out of the goodness of their heart provides you with an open account amount and the flow of money is endless????!!!! No budget problems there!
The aforementioned (BEA) BUREAU OF ECONOMIC ANALYSIS. A Government agency in the Department of Commerce compiles and reports all the assorted measurements and data including national income and production as well as good old GDP. The problem here is that Economists rely heavily on BEA for data in their analysis. Does a MISTAKE here mean BEA (BAD ECONOMY ABUSE)???!!! UH OH.
In the event you learn all this stuff on Economics, be prepared for terms to OBFUSCATE (befog) you more. One is CETERIS PARIBUS (Latin) means OTHER THINGS BEING EQUAL. It is used to isolate one factor from all others in order to observe the results. It is supposed to "un-obfuscate" (lift the fog from) whatever theory they have. Feel free if you want to apply CETERIS PARIBUS to this blog to find out if you learned anything??????!!!!!!!!
Cheers, Connie
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