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29 Cards in this Set

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Acyclical
having no regular relation with the business cycle, that is, with detrended GDP
balance of international payments
the summary statement of a country's international trade in commodities, bonds, and international currency
boom
a period in which aggregate economic acticity or real gross national product is high and rising
budget constraint
the equation realting the sources of funds in a period, such as income from the commodity market and initial assets, to the uses of funds in that period, such as consumption and end-of-period assets
chain-weighted real GDP
a method for constructing real GDP in which the realtive-price weights coninually adjusted for the changing composition of production
Consumer price index
a weighted average of prices of consumer goods relative to a base year
demand for money
the amnt of money that someone desires to hold, expressed as a function of the volume of spending, the interest rate, transaction costs, and other variables
depreciation
the wearing out of capital goods over time; often expressed as a fraction of the stock of capital
disposable personal income
personal income less taxes
general price level
the dollar price per unit of an agregate of commodites
govt consumption expenditure and gross investment
expendistures by govt on consumption goods and capital goods. the consumption part includes an estimate of the imputed rental income on the stock of public capital
GDP
the market value of an economys domestically produced goods and services over a specific period of time
GNP
the total market value of the goods and services produced by the residents of a country over a specified period of time; GNP equals gross domestic product plus the net factor income from abroad
gross private domestic investment
total private expenditure on investment goods, including bussiness spending on plant and equipment, the net change in business inventories, and residential construction. this total contains no adjustment for the depreciation of the existing capital goods
implicit GDP price deflator
the price index that relates the gross domestic product, measured in nomial terms, to real GDP
inflation rate
the percentage change in a price index btwn two periods of time
interest rate
the ratio of the interest payment to the amnt borrowed; the return to lendingor the cost of borrowing
keynesian model
the thoery developed that sought to explain aggregate business fluctautions. the failure of prices to adjust to clear markets is a central element of the model
money
the usual means of payment or medium of exchange in an economy. money also serves as a store of value. money may take the form of paper currency, commodities, or deposits at financial institutions.
national income
the income earned from aggregate production; gross national product adjusted for depreciation and sales and excise taxes
national income accounts
the summary statement of gross national product and its components during a year
NDP
GDP less depreciation
net exports
exports-imports
net investment
change in capital stock; gross investment minus the amount of depresication
personal income
income recieved directly by persons;national income adjusted for undistributed corprate profits, ss contributions, transfer payments, and some other items
procyclical
moving in the same direction as the business cycle, that is, with detrended real GDp
Producer price index
a weighted average of prices of raw materials and semifinished goods, relative to base-year prices
real gross domestic product
the GDp divided by a price index to adjust for changes in the average level of market prices; GDP in constant dollars
wage rate
the dollar amnt paid to a worker in excahnge for an hour of labor services