Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
27 Cards in this Set
- Front
- Back
|
National Income Accounting
|
a system that collects macroeconomic statistics on production, income, investment, and savings
|
|
|
Gross Domestic Product (GDP)
|
the dollar value of all final goods and services produced within a country's borders in a given year
|
|
|
Intermediate Goods
|
goods used in the production of final goods
|
|
|
Durable Goods
|
goods that last for a relatively long time, such as refrigerators, cars, and DVD players
|
|
|
Nondurable Goods
|
goods that last a short period of time, such as food, light bulbs, and sneakers
|
|
|
Nominal GDP
|
GDP measured in current prices
|
|
|
Real GDP
|
GDP expressed in constant, or unchanging, prices
|
|
|
Gross National Product (GNP)
|
the annual income earned by US - owned firms and US citizens
|
|
|
Depreciation
|
the loss of the value of capital equipment that results from normal wear and tear
|
|
|
Price Level
|
the average of all prices in the economy
|
|
|
Aggregate Supply
|
the total amount of goods and services in the economy available at all possible price levels
|
|
|
Aggregate Demand
|
the amount of goods and services in the economy that will be purchased at all possible price levels
|
|
|
Business Cycle
|
a period of macroeconomic expansion followed by a period of contraction
|
|
|
Expansion
|
a period of economic growth as measured by a rise in real GDP
|
|
|
Economic Growth
|
a steady, long-term increase in real GDP
|
|
|
Peak
|
the height of an economic expansion, when real GDP stops rising
|
|
|
Contraction
|
a period of economic decline marked by falling real GDP
|
|
|
Trough
|
the lowest point in an economic contraction, when real GDP stops falling
|
|
|
Recession
|
a prolonged economic contraction
|
|
|
Depression
|
a recession that is especially long and severe
|
|
|
Stagflation
|
a decline in real GDP combined with a rise in the price level
|
|
|
Leading Indicators
|
key economic variables that economists use to predict a new phase of a business cycle
|
|
|
Real GDP Per Capita
|
real GDP divided by the total population
|
|
|
Capital Deepening
|
process of increasing the amount of capital per worker
|
|
|
Saving
|
income not used for consumption
|
|
|
Savings Rate
|
the proportion of disposable income that is saved
|
|
|
Technological Progress
|
an increase in efficiency gained by producing more output without using more inputs
|
