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Definition
| The study of a certain sector of a market. |
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Definition
| The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth. |
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Definition
| A period of increasing economic activity, marked by rising levels total production and total employment. |
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| The period of declining economics activity, where levels of total production and total employment decrease. Period of contraction. |
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Definition
| Alternating periods of economic expansion and economic recession. |
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Definition
| often refers to the ability of an economy to produce increasing quantities of goods and services. |
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Term
| Gross Domestic Product (GDP) |
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Definition
| The market value of all final goods and services produced in a country during a period of time, typically one year. (output produced within country's boarders) |
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| National Income Accounting |
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Definition
| a set of rules and definitions for measuring economic activity in the aggregate economy – that is, in the economy as a whole. |
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Term
| Two ways to eliminate double counting: |
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Definition
| Calculate only final output & Follow the value added approach |
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Definition
-Value of resale goods
-Government transfer payments
-Sales of stocks or bonds
-Work of "house spouses" |
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Term
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Definition
-Value added by a used car dealer
-Commissions of Stock Brokers |
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Term
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Definition
Payments by the government to individuals for which the government does not receive a new good or service in return.
ie: Social Security & Welfare |
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Term
| Gross National Product (GNP) |
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Definition
| is the aggregate final output of citizens and businesses of a designated territory. (output produced by country's citizens) |
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Term
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Definition
| GDP + Net foreign factor income |
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Definition
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Term
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Definition
1. Consumption
2. Investment
3. Government Spending
4. Net Exports |
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Term
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Definition
| Spending by households on goods and services, not including spending on new houses. |
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Term
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Definition
| Spending by firms on new factories, office buildings, machinery, and additions to inventories, and spending by households on new houses. |
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Definition
| Spending by federal, state, and local governments on goods and services. |
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Definition
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Definition
| goods and services people produce for themselves. (ie: personal farm, sell fruits at farmer's market) |
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Definition
| 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. |
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Term
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Definition
| rising price levels for the same (or very similar) goods and services. |
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Term
| US inflation is driven by... |
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Definition
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Term
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Definition
| The percentage increase in the price level from one year to the next. |
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Term
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Definition
| The value of final goods and services in a given year at a designated base-year price level |
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Term
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Definition
| P [base year] (TIMES) Q [current year] |
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Term
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Definition
| The value of final goods and services (P x Q) of a given year using same year prices. |
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Term
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Definition
| P [current year] (TIMES) Q [current year] |
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Definition
| A measure of the average prices of goods and services in the economy. |
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Term
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Definition
| A measure of the price level, calculated by dividing nominal GDP by real GDP and multiplying by 100. |
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Term
| Net National Product (NNP) = |
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Definition
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Term
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Definition
| NNP minus any sales taxes an consumption or depreciation of capital goods |
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Term
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Definition
| Labor income + Dividends + Transfer payments + Govt Interest payments |
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Term
| Disposable Personal Income |
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Definition
| the personal income left after taxes. This is the best measure of what households can truly spend. |
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