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37 Cards in this Set

  • Front
  • Back
national income accounting
measurement of the national economy's performance, dealing with the overall economy's output and income
gross domestic product (GDP)
total dollar value of all final goods and services produced in a nation in a single year
net exports
difference between what the nation sells to other countries and what it buys from other countries
loss of value because of wear and tear to durable goods and capital goods
net domestic product (NDP)
value of the nation's total output (GDP) - toal value lost through depreciation on equipment
national income (NI)
total income earned by everyone in the economy
personal income (PI)
total income that individuals receive before personal taxes are paid
transfer payments
welfare and other supplementary payments that a state or the federal government makes to individuals
disposable personal income (DI)
income remaining for people to spend or save after all taxes have been paid
prolonged rise in the general price level of goods and services
purchasing power
the real goods and services that money can buy: determines the value of money
prolonged decline in the general price level of goods and services
consumer price index (CPI)
measure of the change in price over time of a specific group of goods and services used by the average household
market basket
representative group of goods and services used to compile the consumer price index
base year
year used as a point of comparison for other years in a series of statistics
producer price index (PPI)
measure of the change in price over time that United States producers charge for their goods and services
GDP price deflator
price index that removes the effect of inflation from GDP so that the overall economy in one year can be compared to another year
real GDP
GDP that has been adjusted for inflation by applying the price deflator
aggregate demand
total quantity of goods and services in the entire economy that all citizens will demand at any single time
aggregate demand curve
a graphed line showing the relationship between the aggregate quantity demanded and the average of all prices as measured by the implicit GDP price deflator
aggregate supply
real domestic output of producers based on the rise and fall of the price level
business cycle
irregular changes in the level of total output measured by real GDP
part of the business cycle in which the nation's output (real GDP) does not grow for at least six months
major slowdown of economic activity
inventions and new production techniques
economic indicators
statistics that measure variables in the economy
leading indicators
statistics that point to what will happen in the economy
coincident indicators
economic indicators that usually change at the same time as changes in overall business activity
lagging indicators
indicators that seem to lag behind changes in overall business activity
blue chip stocks
stocks which trade at a premium because the firms they represent are perceived to be highly effective
bull market
best market -- when stock prices are rising
bear market
when stock prices are falling
Dow Jones Industrial Average
an average of stock prices on the New York exchange representing the most widely traded industrial firms in the US
initial public offering
stock offered for sale by a new firm which had previously never been traded
An alternative to the NYSE representing primaily technology-intensive firms
New York Stock Exchange
A place where stocks are traded located on Wall Street in Manhattan.
Securities and Exchange Commission - a government entity charged with monitoring trades in stocks and securities. They are responsible for apprehending individuals engaging in "insider trades"