Term
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Definition
| any persons 16 years or older 1. who works for pay, either for someone else or in his or her own business for 1 or more hours per week, 2. who works without pay for 15 or more hours per week in a family enterprise, or 3. who has a job bus has been temporarily absent with or without pay. |
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Term
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Definition
| a person 16 years or older who is not working, is available for work, and has made specific efforts to find work during the previous 4 weeks. |
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Term
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Definition
| a person who is not looking for work because he or she does not want a job or has given up looking. |
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Term
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Definition
| the number of people employed plus the number of unemployed. |
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Term
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Definition
| the ratio of the number of people unemployed to the total number of people in the labor force. |
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Term
| labor force participation rate |
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Definition
| the ratio of the labor force to the total population 16 years old or older. |
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Term
| discouraged- worker effect |
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Definition
| the decline in the measured unemployment rate that results when people who want to work but cannot find jobs grow discouraged and stop looking , thus dropping out of the ranks of the unemployed and the labor force. |
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Term
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Definition
| the portion of unemployment that is due to the normal working of the labor market; used to denote short-run job/ skill matching problems. |
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Term
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Definition
| the portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries. |
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Term
| natural rate of unemployment |
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Definition
| the unemployment that occurs as a normal part of the functioning of the economy. sometimes taken as the sum of frictional unemployment and structural unemployment. |
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Term
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Definition
| the increase in unemployment that occurs during recessions and depressions. |
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Term
| consumer price index(CPI) |
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Definition
| a price index computed each month by the Bureau of Labor Statistics using a bundle that is meant to represent the "market basket" purchased monthly by the typical urban consumer. |
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Term
| producer price indexes (PPIs) |
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Definition
| measures of prices that produces receive for products at all stages in the production process. |
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Term
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Definition
| the difference between the interest rate on a loan and the inflation rate. |
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Term
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Definition
| the growth rate of the output of the entire economy |
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Term
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Definition
| the growth rate of output per person in the economy. |
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Term
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Definition
| the growth rate of output per worker. |
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Term
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Definition
| the total quantity of goods and services produced (or supplied) in an economy in a given period. |
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Term
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Definition
| the total income received by all factors of production in a given period. |
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Term
| aggregate output (income) (Y) |
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Definition
| A combined term used to remind you of the exact equality between aggregate output and aggregate income. |
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Term
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Definition
| the relationship between consumption and income |
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Term
| marginal propensity to consume (MPC) |
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Definition
| that fraction of a change in income that is consumed, or spent. |
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Term
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Definition
| the part of aggregate income that is not consumed. |
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Term
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Definition
| something that is always true. |
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Term
| marginal propensity to save (MPS) |
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Definition
| that fraction of a change in income that is saved. |
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Term
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Definition
| those additions to capital stock and inventory that are planned by firms |
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Term
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Definition
| the actual amount of investment that takes place; it includes items such as unplanned changes in inventories. |
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Term
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Definition
| occurs when there is no tendency for change. In the macroeconomics good market, equilibrium occurs when planned aggregate expenditure is equal to aggregate output. |
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Term
| panned aggregate expenditure (AE) |
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Definition
| the total amount the economy plans to spend in a given period. equal to consumption plus planned investment. AE=C+I. |
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Term
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Definition
| the ratio of the change in the equilibrium level of output to a change in some exogenous variable. |
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Term
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Definition
| a variable that is assumed not to depend on the state of the economy- that is, it does not change when the economy changes. |
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Term
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Definition
| the government's spending and taxing policies. |
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Term
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Definition
| the behavior of the Federal Reserve concerning the nation's money supply. |
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Term
| discretionary fiscal policy |
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Definition
| changes in taxes or spending that are the result of deliberate changes in government policy. |
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Term
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Definition
| taxes paid by firms and households to the government minus transfer payments made to the households by the government |
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Term
| disposable, or after-tax income (Yd) |
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Definition
| total income minus net taxes: Y-T. |
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Term
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Definition
| the difference between what a government spends and what it collects in taxes in a given period: G-T |
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Term
| government spending multiplier |
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Definition
| the ratio of the change in the equilibrium level of output to a change in government spending. |
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Term
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Definition
| the ratio of change in the equilibrium level of output to a change in texas. |
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Term
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Definition
| the budget of the federal government |
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Term
| federal surplus (+) or deficit (-) |
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Definition
| federal government receipts minus expenditures |
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Term
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Definition
| the total amount owed by the federal government |
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Term
| privately held federal debt |
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Definition
| the privately held (non-government-owned) debt of the U.S. government. |
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Term
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Definition
| revenue and expenditure items in the federal budget that automatically change with the state of the economy in such a way to stabilize GDP |
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Term
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Definition
| the negative affect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion. |
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Term
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Definition
| what the federal budget would be if the economy were producing at the full-employment level of output. |
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Term
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Definition
| the deficit that remains at full employment |
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Term
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Definition
| the deficit that occurs because of a downturn in the business cycle. |
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Term
| national income and product accounts |
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Definition
| data collected and published by the government describing the various components of national income and output in the economy. |
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Term
| gross domestic product (GDP) |
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Definition
| the total market value of all final goods and services produces within a given period by factors of production located within a country. |
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Term
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Definition
| goods and services produced for final use |
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Term
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Definition
| goods that are produced by one firm for use in further processing by another firm. |
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Term
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Definition
| the difference between the value of goods as they leave a stage of production and the cost of the goods as they entered that stage. |
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Term
| gross national product (GNP) |
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Definition
| the total market value of all final goods and services produced within a given period by factors of production owned by a country's citizens, regardless of where the output is produced. |
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Term
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Definition
| a method of computing GDP that measures the total amount spent on all final goods and services during a given period. |
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Term
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Definition
| a method of computing GDP that measures the income- wages, rents, interests, and profits- received by all factors of production in producing final goods and services. |
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Term
| personal consumption expenditures (C) |
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Definition
| expenditures by consumers on goods and services. |
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Term
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Definition
| goods that last a relatively long time, such as cars and households appliances. |
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Term
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Definition
| goods that are used up fairly quickly, such as food as clothing. |
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Term
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Definition
| the things we buy that do not involve the production of physical things, such as legal and medical services and education |
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Term
| gross private domestic investment (I) |
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Definition
| total investment in capital- that is, the purchase of new housing, plants, equipment, and inventory by the private (or nongovernment) sector. |
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Term
| nonresidential investment |
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Definition
| expenditures by firms for machines, tools, pants, and so on. |
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Term
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Definition
| expenditures by households and firms on new houses and apartment buildings. |
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Term
| change in business inventories |
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Definition
| the amount by which firms inventories change during a period. inventories are the goods that firms produce now but intend to sell later. |
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Term
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Definition
| the amount by which an asset's value falls in a given period. |
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Term
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Definition
| the total value of all newly produced capital goods (plants, equipment, housing, and inventory) produced in a given period. |
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Term
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Definition
| gross investments minus depreciation. |
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Term
| government consumption and gross investment (G) |
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Definition
| expenditures by federal, state, and local government for final goods and services. |
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Term
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Definition
| The difference between exports (sales to foreigners of U.S. produced goods and services) and imports ( U.S. purchases of goods services from abroad) the figure can be positive or negative. |
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Term
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Definition
| the total income earned by the factors of production owned by a country's citizens |
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Term
| compensation of employees |
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Definition
| includes wages, salaries, and various, supplements- employer contributions to social insurance and pension funds, for example- paid to households by firms and by the government. |
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Term
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Definition
| the income of unincorporated business |
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Term
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Definition
| the income received by property owners in the form of rent |
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Term
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Definition
| the income of corporations |
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Term
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Definition
| the interest paid by business |
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Term
| indirect taxes minus subsides |
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Definition
| taxes such as sales taxes, customs duties, and license fees less subsidies that the government pays for which it receives no goods or services in return. |
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Term
| net business transfer payments |
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Definition
| net transfer payments by business to others. |
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Term
| surplus of government enterprises |
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Definition
| income of government enterprises |
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Term
| net national product (NNP) |
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Definition
| gross national product minus depreciation; a nations total product minus what is required to maintain the value of its capital stock. |
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Term
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Definition
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Term
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Definition
| the total income of households. |
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Term
| disposable personal income or after tax income |
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Definition
| personal income minus personal income taxes. the amount that households have to spend or save. |
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Term
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Definition
| the amount of disposable income that is left after total personal spending in a given period |
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Term
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Definition
| the percentage of disposable personal income that is saved. if the personal saving rate is low, households are spending a large amount relative to their incomes; if it is high, households are spending cautiously. |
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Term
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Definition
| the current prices that we pay for goods and services. |
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Term
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Definition
| gross domestic product measured in current dollars. |
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Term
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Definition
| the importance attached to an item within a group of items. |
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Term
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Definition
| the year chosen for the weights in a fixed -weight procedure. |
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Term
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Definition
| a procedure that uses weights from a given base year. |
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Term
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Definition
| the part of the economy in which transactions take place and in which income is generated that is unreported and therefore not counted in GDP |
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Term
| gross national income (GNI) |
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Definition
| GNP converted into dollars using an average of currency exchange rates over several years adjusted for rates of inflation. |
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