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21 Cards in this Set
- Front
- Back
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Business Cycle |
Alternating periods of economic expansion & economic recession. |
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Consumption |
Spending by households on goods & services, not including spending on new houses. |
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Economic Growth |
The ability of an economy to produce increasing quantities of goods & services. |
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Expansion |
The period of a business cycle during which total production and total employment are increasing. |
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Final good or service |
A good or service purchased by a final user. |
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GDP deflator |
A measure of the price level. (Nominal GDP/Real GDP)*100 |
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Government Purchases |
Spending by Federal, State, and Local Governments on Goods & Services. |
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Gross Domestic Product (GDP) |
The market value of all final goods & services produced in a country during a period of time, typically one year. |
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Inflation Rate |
The percentage increase in the price level from year to the next. |
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Intermediate Good or Service |
A good or service that is an input into another good or service, ex. tires on a truck. |
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Investment |
Spending by firms on new factories, office buildings, and additions to inventories, PLUS spending by households and firms on new houses. |
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Macroeconomics |
The study of the economy as a whole. |
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Microeconomics |
The study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices. |
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Net Exports |
EXPORTS - IMPORTS |
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Nominal GDP |
The value of final goods and services evaluated at current-year prices. |
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Price Level |
A measure of the average prices of goods and services in the economy. |
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Real GDP |
The value of final goods and services evaluated at base-year prices. |
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Recession |
The period of a business cycle during which total production and total employment are decreasing. |
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Transfer Payments |
Payments made by the government to households for which the government does not receive a new good or service in return. |
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Underground Economy |
Buying and Selling of goods and services that is concealed from the government to avoid taxes or regulations or because the goods and services are illegal. |
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Value Added |
The market value a firm adds to a product. |
