Economics [Unit 5]

Front 1

Gross Domestic Product [GDP]

Back 1

The total dollar value of all goods and services produced within a country, in a year.

Front 2

Nominal GDP

Back 2

GDP which is measured in current prices for the year.

Front 3

Real GDP

Back 3

GDP which is expressed in constant, or

unchanging prices.

Front 4

Gross National Product [GNP]

Back 4

The annual income earned by U.S. owned firms and U.S. citizens.

Front 5

Aggregate Supply

Back 5

The total amount of goods and services in the economy available at all possible price levels.

Front 6

Aggregate Demand

Back 6

The amount of goods and services in the

economy, that will be purchased at all possible price levels.

Front 7

Capital Deepening

Back 7

The process of increasing the amount of capital per worker.

Front 8

Technological Progress

Back 8

An increase in efficiency gained by producing more output without more input.

Front 9

Census

Back 9

An official count of the population.

Front 10

Cyclical Unemployment

Back 10

Unemployment that rises during economic downturns and falls when the economy

improves.

Front 11

Unemployment Rate

Back 11

The percentage of the nation's labor force that is unemployed.

Front 12

Underemployed

Back 12

When a person is working at a job for which they are over-qualified, or working part-time when they desire full-time work.

Front 13

Inflation

Back 13

A general increase in price.

Front 14

Consumer Price Index [CPI]

Back 14

Found by measuring the price of a standard group of goods meant to represent the "Market Basket" of a typical urban consumer.

Front 15

Fixed Income

Back 15

An income that does not increase even when prices go up.

Front 16

Deflation

Back 16

A sustained drop in the price level.

Front 17

Poverty Threshold

Back 17

The income level below which income is

insufficient to support a family or household.

Front 18

Income Distribution

Back 18

How the nation's total income is distributed among its population.

Front 19

Food Stamps

Back 19

Government issued coupons that people can exchange for food.

Front 20

Fiscal Policy

Back 20

The use of government spending and revenue collection to influence the economy.

Front 21

Federal Budget

Back 21

A document that indicates the amount of

money the government expects to receive

for a certain year and authorizing the amount the government can spend that year.

Front 22

Fiscal Year

Back 22

A twelve-month period of time that can start at any time.

Front 23

Appropriations Bill

Back 23

This is made up of Bills sent by each house of the government that ask for authorization for specific spending.

Front 24

Budget Surplus

Back 24

When there is more money going into the

Treasury than coming out of it.

Front 25

Budget Deficit

Back 25

When there is more money coming out of the Treasury than going into it.

Front 26

National Debt

Back 26

The total amount of money the Federal

Government owes to bondholders.

Front 27

Crowding-Out Effect

Back 27

When Federal borrowing "crowds out" private borrowing by making it harder for private

businesses to borrow.

Front 28

Monetarism

Back 28

The belief that the money supply is the

most important factor in macroeconomic

performance.

Front 29

Inside Lag

Back 29

Delays in implementing policy.

Front 30

Outside Lag

Back 30

The time it takes before a new policy becomes

effective.