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27 Cards in this Set

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the quantity of total output (GDP) demanded (purchased) at alternative average price levels
aggregate demand
the quantity of total output (GDP) supplied (produced) at alternative average price levels
aggregate supply
the market value of all final goods and services produced in the economy in a given time period (usually a year)
Gross Domestic Product (GDP)
the retail price of a product plus any sales and excies taxes paid by the consumer
market price
the market value of all final goods and services produced by the economy in a given time period (usually a year)
Gross National Product (GNP)
GDP calculated at constant prices
real GDP
prices that exist in a base year
constant prices
GDP calculated at current prices
nominal GDP
actual prices of a particular year
Current prices
the goods and services of which GDP consists
composition of GDP
how national income is distributed within an economy
distribution of income
products with a life of longer than one year
durable goods
products with a life of less than one year
nondurable goods
unsold goods and materials
inventories
a cash transfer from the government to an individual for which no good or service is provided to the government in return
income transfer
decline in a nation's gross domestic product (output) associated with a rise in unemployment
recession
simultaneous inflation and recession
stagflation
the use of government spending and tax policy to shift the aggregate demand curve
fiscal policy
fiscal policy that increasesaggregate demand, thereby expanding GDP
expansionary fiscal policy
fiscal policy that decreases aggregate demand, thereby contracting GDP
contractionary fiscal policy
changes made in the nation's money supple to shift the aggregate demand curve
monetary policy
the US central banking system
federal reserve
monetary policy that decreases aggregate demand, thereby contracting GDP
contractionary monetary policy
monetary policy that increases aggregate demand, thereby expanding GDP
expansionary monetary policy
the use of various tools to shift the aggregate supply curve to the right
supply-side policy
the reduction of government regulations
deregulation
the view that the supply-side policy will generate economic growth and prosperity, the benefits of which will eventually "tricle down" to all
trickle-down philosophy