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33 Cards in this Set
- Front
- Back
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GROSS DOMESTIC PRODUCT (GDP) |
The market value of all final goods and services produced within a country in a given period of time |
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CONSUMPTION |
Spending by households on goods and services, with the exception of purchases of new housing |
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GOVERNMENT PURCHASES |
Spending on goods and services by local, state and national governments |
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TRANSFER PAYMENT |
A payment for which no good or service is exchanged |
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NET EXPORTS |
Spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports) |
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NOMINAL GDP |
The production of goods and services valued at current prices |
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REAL GDP |
A measure of the amount produced that is not affected by changes in prices |
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GDP DEFLATOR |
A measure of the price level calculated as the ratio of nominal GDP to real GDP times 100 |
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CONSUMER PRICES INDEX (CPI) |
A measure of the overall prices of the goods and services bought by a typical consumer |
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INFLATION RATE |
The percentage change in the price index from the preceeding period |
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PRODUCER PRICES INDEX |
A measure of the change in prices of a basket of goods and services bought by firms |
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NOMINAL INTEREST RATE |
The interest rate as usually reported without a correction for the effects of inflation |
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REAL INTEREST RATE |
The interest rate corrected for the effects of inflation |
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UNEMPLOYED |
The number unemployed in an economy is the number of people of working age who are able and available for worm at current wage rates and who do not have a job |
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LABOUR FORCE |
The total number of workers, including both the employed and the unemployed |
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UNEMPLOYMENT RATE |
The percentage of the labour force that is unemployed |
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LABOUR FORCE PARTICIPATION RATE |
The percentage of the adult population that is in the labour force |
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NATURAL RATE OF UNEMPLOYMENT |
The normal rate of unemployment around which the unemployment rate fluctuates |
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CYCLICAL UNEMPLOYMENT |
The deviation of unemployment from its natural rate |
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ABSOLUTE ADVANTAGES |
The comparison among producers of a good according to their productivity |
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COMPARATIVE ADVANTAGE |
The comparison among producers of a good according to their opportunity cost |
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EXPORTS |
Goods produced domesticaly and sold abroad |
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IMPORTS |
Goods produced abroad and purchased for use in the domestic economy |
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TRADE BALANCE |
The value of a nations export minus the value of its imports, also called net exports |
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TRADE SURPLUS |
An excess of exports over imports |
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TRADE DEFICIT |
An excess of imports over exports |
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BALANCED TRADE |
A situation in which exports equal imports |
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NET CAPITAL OUTFLOW |
The purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners |
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NOMINAL EXCHANGE RATE |
The rate at which a person can trade the currency of one country for the currency of another |
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APPRECIATION |
An increase in the value of a currency as measured by the amount of foreign currency it can buy |
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DEPRECIATION |
A decrease in the value of a currency as measured by the amount of foreign currency it can buy |
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RATE EXCHANGE RATE |
The rate at which a person can trade the goods and services of one country for the goods and services of another |
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PURCHASING POWER PARITY |
A theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries |
