Term
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Definition
| The study of the determination of economic aggregates, such as total output, total employment, the price level, and the rate of economic growth |
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| Total national income measured in current dollas. Also called current-dollar national income |
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| National income measured in constant (base-period) dollars. It changes only when quantities change. |
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| Fluctuations of national income around its trend value that follow a more or less wavelike pattern |
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Definition
| The real GDP that the economy would produce if its productive resources were employed at their normal levels of utilization. Also called potential GDP. |
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Definition
| Actual national income minus potential national income, Y-Y*. |
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Definition
| A situation in which actual output is less than potential output, Y |
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| A situation in which actual output exceeds potential output, Y>Y* |
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Definition
| A downturn in the level of economic activity. Often defined precisely as two consecutive quarters in which real GDP falls. |
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Definition
| The number of persons 15 years of age or older who have jobs |
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Definition
| The number of persons 15 years of age or older who are not employed and are actively searching for a job |
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Definition
| The number of persons employed plus the number of persons unemployed |
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Definition
| Unemployment expressed as a percentage of the labour force, denoted U. |
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Definition
| The level of real GDP divided by the level of employment (or total hours worked) |
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Definition
| The average level of all prices in the economy, expressed as an index number |
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Definition
| A rise in the average level of all prices (the price level) |
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Term
| Consumer Price Index (CPI) |
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Definition
| An index of the average prices of goods and services commonly bought by households |
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Term
| Purchasing Power of Money |
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Definition
| The amount of goods and services that can be purchased with a unit of money |
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Term
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Definition
| The price paid per dollar borrowed per period of time, expressed either as a proportion (e.g., 0.06) or as a percentage (e.g., 6 percent) |
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Term
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Definition
| The price paid per dollar borrowed per period of time |
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Term
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Definition
| The nominal rate of interest adjusted for the change in the purchasing power of money. Equal to the nominal interest rate minus the rate of inflation |
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Definition
| The number of units of domestic currency required to purchase one unit of foreign currency |
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Term
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Definition
| Foreign currencies that are traded on the foreign-exchange market |
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Term
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Definition
| The market in which different national currencies are traded |
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Term
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Definition
| A rise in the exchange rate - it takes more units of domestic currency to purchase one unit of foreign currency |
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Term
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Definition
| A fall in the exchange rate - it takes fewer units of domestic currency to purchase one unit of foreign currency |
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Term
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Definition
| All outputs that are used as inputs by other producers in a further stage of production |
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Term
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Definition
| Goods that are not used as inputs by other firms but are produced to be sold for consumption, investment, government, or exports during the period under consideration |
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Term
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Definition
| The value of a firm's output minus the value of the inputs that it purchases from other firms |
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Term
| Gross Domestic Product (GDP) |
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Definition
| The total value of goods and services produced in the economy during a given period |
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Term
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Definition
| Household expenditure on all goods and services. Represented by the symbol C. |
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Term
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Definition
| Expenditure on the production of goods not for present consumption. Represented by the symbol I. |
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Term
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Definition
| Stocks of raw materials, goods in process, and finished goods held by firms to mitigate the effect of short-term fluctuations in production or sales. |
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Definition
| The aggregate quantity of capital goods. |
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Term
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Definition
| The creation of new plant and equipment |
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Term
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Definition
| The amount by which the capital stock is depleted through the production process |
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Definition
| All government expenditure on currently produced goods and services, exclusive of government transfer payments. Represented by the symbol G. |
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Definition
| A payment to an individual or institution not made in exchange for a good or service |
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Term
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Definition
| The value of all domestically produced goods and services purchased from firms, households, or governments in other countries |
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Definition
| The value of all goods and services sold to firms, households, and governments in other countries |
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Definition
| The value of total exports minus the value of total imports. Represented by the symbol NX. |
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Term
| Gross National Product (GNP) |
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Definition
| The value of total incomes earned by domestic residents |
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Term
| Disposable Personal Income |
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Definition
| The part of national income that accrues to households and is available to spend or save |
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Term
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Definition
| An index number derived by dividing nominal GDP by real GDP. Its change measures the average change in price of all the items in the GDP. |
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