Productivity and the Nation’s Gross Domestic Product.

 Productivity is the relationship between the number of units produced and the number of
human and other production inputs necessary to produce them. Productivity is a ratio of output
to input.
 Gross domestic product (GDP) sum of all goods and services produced within a country’s
boundaries during a specific time period, such as a year. The GDP is based on the per-capita
output of a country—in other words, total national output divided by the number of citizens.

Price-Level Changes.
 Inflation economic situation characterized by rising prices caused by a combination of excess
consumer demand and increases in the costs of raw materials, component parts, human
resources, and other factors of production.
 Core inflation rate inflation rate of an economy after energy and food prices are removed.
 Hyperinflation economic situation characterized by soaring prices.
 Deflation opposite of inflation, occurs when prices continue to fall.
o This situation is ideal to consumers.
o It can weaken the economy.
 Consumer Price Index (CPI) measurement of the monthly average change in prices of goods
and services