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;
21 Cards in this Set
- Front
- Back
Business Cycle |
Alternating periods of economic expansion & economic recession. |
|
Consumption |
Spending by households on goods & services, not including spending on new houses. |
|
Economic Growth |
The ability of an economy to produce increasing quantities of goods & services. |
|
Expansion |
The period of a business cycle during which total production and total employment are increasing. |
|
Final good or service |
A good or service purchased by a final user. |
|
GDP deflator |
A measure of the price level. (Nominal GDP/Real GDP)*100 |
|
Government Purchases |
Spending by Federal, State, and Local Governments on Goods & Services. |
|
Gross Domestic Product (GDP) |
The market value of all final goods & services produced in a country during a period of time, typically one year. |
|
Inflation Rate |
The percentage increase in the price level from year to the next. |
|
Intermediate Good or Service |
A good or service that is an input into another good or service, ex. tires on a truck. |
|
Investment |
Spending by firms on new factories, office buildings, and additions to inventories, PLUS spending by households and firms on new houses. |
|
Macroeconomics |
The study of the economy as a whole. |
|
Microeconomics |
The study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices. |
|
Net Exports |
EXPORTS - IMPORTS |
|
Nominal GDP |
The value of final goods and services evaluated at current-year prices. |
|
Price Level |
A measure of the average prices of goods and services in the economy. |
|
Real GDP |
The value of final goods and services evaluated at base-year prices. |
|
Recession |
The period of a business cycle during which total production and total employment are decreasing. |
|
Transfer Payments |
Payments made by the government to households for which the government does not receive a new good or service in return. |
|
Underground Economy |
Buying and Selling of goods and services that is concealed from the government to avoid taxes or regulations or because the goods and services are illegal. |
|
Value Added |
The market value a firm adds to a product. |