Download Real Gross Domestic Product (GDP) Definition and more Exercises Statistics in PDF only on Docsity! Real Gross Domestic Product (GDP) Definition: The total value of goods and services produced within the borders of the United States, regardless of who owns the assets or the nationality of the labor used in producing that output. (In contrast, Gross National Product (GNP) measures the output of the citizens of the US and the income from assets owned by US entities, regardless of where located.) The growth of output is measured in real terms, meaning increases in output due to inflation have been removed. Source: US Department of Commerce; Bureau of Economic Analysis Frequency: Quarterly Availability: Data are typically released during the final week of the month. The first or advance estimate is released during the final week of the month immediately following the end of a calendar quarter. Reason: The Federal Reserve's primary goal is sustained growth of the economy with full employment and stable prices. Real GDP is the most comprehensive measure of the performance of the U.S. economy. By monitoring trends in the overall growth rate as well as the unemployment rate and the rate of inflation, policy makers are able to assess whether the current stance of monetary policy is consistent with that primary goal. Consumer Price Index (CPI) Definition: An index designed to measure the change in price of a fixed market basket of goods and services. The market basket of goods and services is representative of the purchases of a typical urban consumer. The index is intended to measure pure price change only; attempts are made to remove changes in price resulting from changes in quality. Source: U.S. Department of Labor; Bureau of Labor Statistics Frequency: Monthly Availability: Generally available the second week of the month immediately following the month for which data is being released; always released after the Producer Price Index. Reason: The rate of change of the CPI is one of the key measures of inflation for the U.S. economy. Acceleration or deceleration of inflation may signal that a change in monetary policy may be appropriate. Nonfarm Payroll Employment Definition: An estimate of the number of payroll jobs at all nonfarm business establishments and government agencies. Information is also provided on the average number of hours worked per week and average hourly and weekly earnings. Source: U.S. Department of Labor; Bureau of Labor Statistics Frequency: Monthly Availability: Usually the first Friday of the month for the immediately preceding month; occasionally released on the second Friday. Reason: Growth of employment and hours worked provide important information about the current and likely future pace of overall economic growth. Trends in average hourly earnings provide information about supply and demand conditions in labor markets, which may provide signals about the overall level of resource utilization in the economy.
