Term
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Definition
| the study of how households and firms make decisions and how they interact in markets |
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Term
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Definition
| the study of economy-wide phenomena including inflation, unemployment, and economic growth |
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Term
| GDP - Bureau of Economic Analysis (US Department of Commerce) |
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Definition
Gross Domestic Product
Includes:
total income of everyone in the economy and total expenditure on the economy's of output of goods and services
Goods sold legally and non-internet.
Final Goods.
Includes both goods and services.
Goods currently produced.
Production within the country.
C + I + G + NX |
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Term
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Definition
spending by households on goods and services with the exception of purchases of new housing
it makes up 70% of GDP |
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Term
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Definition
| spending on capital equipment, inventories, and structures, including household purchases of new housig |
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Term
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Definition
| spending on goods and services by local, state, and federal governments |
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Term
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Definition
| spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports) |
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Term
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Definition
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Term
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Definition
| The automatic correction by law or contract of a dollar amount for the effects of inflation |
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Term
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Definition
| the interest rate as usually reported without a correction for the effects of inflation |
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Term
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Definition
| the interest rate corrected for the effects of inflation |
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Term
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Definition
| the stock of equipment and structures that are used to produce goods and services |
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Term
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Definition
| the knowledge and skills that workers acquire through education, training, and experience |
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Term
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Definition
| the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits |
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Term
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Definition
| society's understanding of the best ways to produce goods and services |
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Term
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Definition
| people's ability to exercise authority over the resources they own |
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Term
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Definition
| attempt to increase productivity and living standards within the country by avoiding interaction with the rest of the world |
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Term
| Outward-oriented Policies |
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Definition
| International trade in goods and services can improve the economic well-being of a country's citizens |
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Term
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Definition
| Measure of the overall cost of goods and services bought by a typical consumer - used to monitor changes in the COL over time |
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Term
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Definition
| a measure of the cost of a basket of goods and services bought by firms |
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Term
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Definition
| financial institutions through which savers can indirectly provide funds to borrows |
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Term
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Definition
| an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds |
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Term
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Definition
| the total income in the economy that remains after paying for consumption and government purchases |
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Term
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Definition
| the income that households have left after paying for taxes and consumption |
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Term
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Definition
| the tax revenue that the government has left after paying for its spending |
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Term
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Definition
| an excess of tax revenue over government spending |
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Term
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Definition
| the shortfall of tax revenue the government has left after paying for its spending |
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Term
| Market for Loanable Funds |
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Definition
| the market in which those who want to save, supply funds, and those who want to borrow, to invest, demand funds |
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Term
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Definition
| the quantity of goods and services provided from each unit of labor input |
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Term
| Diminishing Returns of Saving |
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Definition
| the property whereby the benefit from an extra unit of an input declines as the quantity of input increases |
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Term
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Definition
| countries that start off poor tend to grow more rapidly than countries that start off rich |
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