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30 Cards in this Set
- Front
- Back
National income accounting
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A system that collect maroeconomic statistics on production,income,investment,and savings
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Gross domestic product
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The dollar value of all final goods and services produced within a country's borders in a given year
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Intermediate good
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Goods used in the production of final goods
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Durable goods
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Goods that last for a relatively long time,such as refrigerators,cars,and dvd players
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Nondurable goods
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Goods that last a short period of time,such as food,light bulbs,and sneakers
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Nominal GDP
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Measured in current prices
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Real GDP
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Expressed in constant,or unchanging,prices
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Gross national product
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The annual income earned by U.S. owned firms and U.S.citizens
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Depreciation
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The loss of the value of capital equipment that results from normal wear and tear
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Price level
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The average of all prices in the economy
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Aggregate supply
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The total amount of goods ans services in the economy available at all possible price levels
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Aggregate demand
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The amount of goods and services in the economy that wll be purchasedat all possible price levels
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Business cycle
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Period of macroeconomic expansion followed by a period of contraction
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Expansion
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A period of economic growth as measured by a rise in real GDP
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Economic growth
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A steady,long-term increase in real GDP
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Peak
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The height of an economic expansion,when real GDP stops rising
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Contraction
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A period of economic decline marked by falling real GDP
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Trough
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The lowest point in an economic contraction,when real GDP stops falling
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Recession
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A prolonged economic contraction
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Depression
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A recession that is especially long and severe
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Stagflation
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A decline in real GDP combined with a rise in the price level
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Leading indicators
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Key economic variables that economists use to predict a mew phrase of a business cycle
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Real GDP per capita
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Real GDP divided by the total population
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Capital deepening
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Process of increasing the amount of capital per worker
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Saving
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Income not used for consumption
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Savings rate
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The proportion of disposable income that is saved
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Frictional unemployment
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Unemployment that occurs when people take time to find a job
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Seasonal Unemployment
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That occurs as a results of harvest schedules or vacations,or when industries slow or shut down for a season
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Structural unemployment
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That occurs whe workers skill do not match the jobs that are available
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Cyclical unemployment
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That rises during economic downturns and falls when the economy improves
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