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10 Cards in this Set
- Front
- Back
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Altering period of economic expansion and economic recession.
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Business Cycle
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The period of a business cycle during which total production and total employment are increasing.
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Expansion
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The period of a business cycle during which total production and total employment are decreasing.
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Recession
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The percentage increase in the price level from one year to the next.
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Inflation Rate
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The market value of all final goods and services produced in a country during a period of time, typically a year.
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Gross Domestic Product (GDP)
- The Bureau of Economic Analysis (BEA) in the Department of Commerce complies data needed to calculate GDP. |
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A good or service purchased by a final user.
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Final good or purchase
- In measuring GDP, we only include the value. |
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A good or service that is an input into another good or service, such as a tire on a truck.
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Intermediate good or service
- The truck would be the final good. - If we included the value of the tire, we would be double counting. |
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Payments by the government to individuals for which the government does not receive a new good or service in return.
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Transfer payments
- Included Social Security. - Are not included in GDP. |
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Spending by households on goods and services, not including spending on new houses.
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Consumption
- Divided into services, non-durable goods, and durable goods. |
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Spending by firms on new factories, office buildings, machinery, and additions to inventories, plus spending by households and firms on new houses.
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Investment
- Divided into business fixed investment, residential investment, and changes in business inventories. |
