Term
|
Definition
|
|
Term
| Unemployment rate equation |
|
Definition
| # of unemployed/labor force * 100 |
|
|
Term
| Labor force participation rate equation |
|
Definition
| Labor force/population * 100 |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| Sale value -intermediate good value |
|
|
Term
| Investment spending equation |
|
Definition
| National savings + net capital inflow |
|
|
Term
| Value price index equation |
|
Definition
| Cost of market basket in given year/ 100 * 100 |
|
|
Term
| Rate of inflation equation |
|
Definition
| Price index year 2-price index year 1/price idea year 1*100 |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| 2nd year nominal GDI equation |
|
Definition
| Year 2 prices * year 2 quantity |
|
|
Term
|
Definition
| Base year price*base quantity |
|
|
Term
| Real GDP base year equation |
|
Definition
| Year 2 prices*base quantity |
|
|
Term
|
Definition
| Year 2 prices * year 2 quantity |
|
|
Term
|
Definition
| Problems such as unemployment are resolved without government intervention, through the working of the invisible hand |
|
|
Term
|
Definition
| A depressed economy is the result of inadequate spending |
|
|
Term
|
Definition
| Used changes in the quantity of money to alter interest rate and affect overall spending |
|
|
Term
|
Definition
| Used changes in government spending and taxes to affect overall spending |
|
|
Term
|
Definition
| Also known as contractions, are periods of economic downturn when output and employment are falling |
|
|
Term
|
Definition
| Also known as recoveries, are periods of economic upturn when output and employment are rising |
|
|
Term
|
Definition
| Is the short run alternation between recession and expansions |
|
|
Term
|
Definition
| The point at which economy turns from expansion to recession |
|
|
Term
|
Definition
| The point at which the economy turns from recession to expansion |
|
|
Term
|
Definition
| Is the sustained upward trend in the economy's output over time. Long run economic growth per capita is a sustained upward trend in output per person - key to higher wages and a rising standard of living |
|
|
Term
|
Definition
| A rising overall level of prices |
|
|
Term
|
Definition
| A falling of overall level of prices |
|
|
Term
|
Definition
| When the overall level of prices changes slowly or not at all |
|
|
Term
|
Definition
| An economy that trades goods and services with other countries |
|
|
Term
|
Definition
| When the value of goods and services bought from foreigners is more than the value of goods and services it sells to them |
|
|
Term
|
Definition
| When the value of goods and services bought from foreigners is less than the value of the goods and services it sells to them |
|
|
Term
| National income and product accounts (national accounts) |
|
Definition
| Keep track of the flows of lonely between different sectors of the economy |
|
|
Term
|
Definition
| Household spending on goods and services |
|
|
Term
|
Definition
| Share in the ownership of a company held by a shareholder |
|
|
Term
|
Definition
| Borrowing in the form of an IOU that pays interest |
|
|
Term
|
Definition
| Payments by the government to individuals for which no good or service is provided in return |
|
|
Term
|
Definition
| income plus government transfers - taxes. The total amount of household income available to spend on consumption and to save |
|
|
Term
|
Definition
| Disposable income - consumer spending. Disposable income that is not spent on consumption |
|
|
Term
|
Definition
| The banking, stock, and bond markets which channel private savings and foreign lending into investment spending, government borrowing and foreign borrowing |
|
|
Term
|
Definition
| The total amount of funds borrowed by federal state and local governments in the financial markets |
|
|
Term
|
Definition
| Goods and services sold to other countries |
|
|
Term
|
Definition
| Goods and services purchased from other countries |
|
|
Term
|
Definition
| Stocks of goods and raw materials held to facilitate business operations |
|
|
Term
|
Definition
| Spending on productive physical capital such as Mahoney and construction of buildings and on changes to inventories |
|
|
Term
|
Definition
| Goods and services sold to the final or end user |
|
|
Term
| Intermediate goods and services |
|
Definition
| Goods and services bought from one form by another firm that are inputs for production of final goods and services |
|
|
Term
|
Definition
| The total value of final goods and services produced in the economy during a given year |
|
|
Term
|
Definition
| The sum of consumer spending, investment spending, government purchases of goods and services and exports minus imports is the total spending on domestically produced final goods and services in the economy |
|
|
Term
|
Definition
| Value of sales - value of its purchases of intermediate goods and services |
|
|
Term
|
Definition
| The difference between the value of exports and imports |
|
|
Term
|
Definition
| Economies total quantity of output of final goods and services |
|
|
Term
|
Definition
| Hypothetical set of consumer purchases of goods and services |
|
|
Term
|
Definition
| Measures the cost of purchasing a given market basket in a given year, where that cost is normalized so that it equals 100 in the selected base year |
|
|
Term
|
Definition
| Price change per year in a price index typically this the consumer price index |
|
|
Term
| Consumer price index (CPI) |
|
Definition
| Measures the cost of the market basket of a typical urban American family |
|
|
Term
| Producer price index (PPI) |
|
Definition
| Measures changes in the prices of goods purchased by producers |
|
|
Term
|
Definition
| Number of people currently employed in the economy either full or part tome |
|
|
Term
|
Definition
| Number of people who are actively looking for work but aren't employed. This does not include marginally attached or discouraged |
|
|
Term
|
Definition
| The sum of employment and unemployment |
|
|
Term
|
Definition
| Non working people who are capable of working but have given up looking for a job given the state of the job market. |
|
|
Term
| Marginally attached workers |
|
Definition
| Would like to be employed and have looked for a job in the recent past but are not currently looking for work |
|
|
Term
|
Definition
| Number of people who work part time because they cannot find full time jobs |
|
|
Term
|
Definition
| Workers spend time looking for employment are engaged in job search |
|
|
Term
|
Definition
| Unemployment due to the time workers spend in job search |
|
|
Term
|
Definition
| More people are seeking jobs in a particular labor market than there are jobs available at the current wage rate even when the economy is at the work of the business |
|
|
Term
|
Definition
| Wages that employers set above the equilibrium wage rate as an incentive for better employee performance |
|
|
Term
| Natural rate of unemployment |
|
Definition
| The unemployment rate that arises from the effects of frictional + structural unemployment |
|
|
Term
|
Definition
| Deviation of the actual rate of unemployment from the natural rate due to the downturns in the business cycle |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| The real cost of changing a listed price |
|
|
Term
|
Definition
| Arise from the way inflation makes money a less reliable unit of measurement |
|
|
Term
|
Definition
| The interest rate expressed in dollar terms |
|
|
Term
|
Definition
| The nominal interest rate minus the rate of inflation |
|
|
Term
|
Definition
| The process of bringing the inflation rate down |
|
|
Term
|
Definition
| Mathematical formula that tells us how long it takes real GDP per capita or any other variable that grows gradually over time to douvle |
|
|
Term
|
Definition
| Sustained economic growth occurs only when the amount of output produced by the average worker increased steadily. The term labor productivity or productivity for short is used to refer either to output per worker or in some cases output per hour |
|
|
Term
|
Definition
| Consists of human made resources such as buildings and machines |
|
|
Term
|
Definition
| The improvement in labor created by the education and knowledge embodied in the workforce |
|
|
Term
|
Definition
| An advance in the technical means of the production of goods and services |
|
|
Term
| Aggregate production function |
|
Definition
| Hypothetical function that shows how productivity, real GDP per worker, depends on the quantities of physical capital per worker and human capital per worker as well as the state of technology |
|
|
Term
|
Definition
| Estimated the contribution of each major factor in the aggregate production function to economic growth |
|
|
Term
| Total factor productivity |
|
Definition
| The amount of output that can be achieved with a given amount of factor inputs |
|
|
Term
|
Definition
| Spending to create and implement new technologies |
|
|
Term
|
Definition
| Roads, power lines, information networks, and other underpinnings for economic activity |
|
|
Term
|
Definition
| International differences in real GDP per capita tend to narrow over tome |
|
|
Term
|
Definition
| Long run growth that can continue in the face of limited supply of natural resources and the impact of growth in the environment |
|
|
Term
| Savings investment spending identity |
|
Definition
| Savings and investment spending are always equal for the economy as a whole |
|
|
Term
|
Definition
| The difference between tax revenue and government spending when tax revenue exceeds government spending |
|
|
Term
|
Definition
| He difference between tax revenue and government spending when government spending exceeds tax revenue |
|
|
Term
|
Definition
| The difference between tax revenue and government spending |
|
|
Term
|
Definition
| The sum of private savings and the budget balance is the total amount of savings generated within the economy |
|
|
Term
|
Definition
| The total inflow to a country - outflow of funds out of country |
|
|
Term
|
Definition
| A hypothetical market that illustrates the market outcome of the demand for funds generated by the borrowers and he supply of funds provided by lenders |
|
|
Term
|
Definition
| The proportion of a loan that is charged as interest to the borrower typically expressed as an annual percentage of the loan outstanding |
|
|
Term
|
Definition
| Occurs when a borrower fails to make payments as specified by the lab or bond contract |
|
|
Term
|
Definition
| Financial intermediary that creates a stock portfolio and then resells shares of portfolio to individual investors |
|
|
Term
|
Definition
| Type of mutual fund that holds assets in order to provide retirement income to its members |
|
|
Term
|
Definition
| The movement over time of an unpredictable variable |
|
|
