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11 Cards in this Set

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  • Back
Measures the totoal market value of all final goods and services produced in the domestic economy during a one-year period; It is the product of the quatity of goods and services produced in their respective prices.
Gross Domestic Product Or GDP
Meausres the relationship between prices for a given year and prices for a selected (base) year.
Price index
is a price index found by dividing the nominal GDP by real GDP and then multiplying by 100.
GDP Deplator
is a measure of changes in prices for aggregate output realtive to prices that existed in the base year ysed to calculate real GDP.
GDP Deplator
is an action taken by government to impacts aggregate emand to moderate the expansion and contraction phases of the business cycle.
Stabilization policy
aims to stabilize econmic activity by controlling the money supply or interest rate while fiscal policy utilizes a change in tax rates and/or the level of government spending for the same objective.
Monetary policy
exists when there is a sustained increase in the price level
is concerned with the level of output of goods and services, genreal level of prices and the growth of realoutput
when does real GDP increases
when there is an increase in the output of goods and services
Ceteris paribus means that
other factors are held constant
assumes that prices and wages do not adjust immediately to a change in aggregate supply and/or aggreage demand
Keynesian model