Term
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Definition
| An inded that measures the prices of a fixed "market basket" of some 300 goods and services bought by a typical urban family. |
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Term
| Consumption of Fixed Capital |
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Definition
| An estimate of the amount of capital worn out in producing GDP |
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Term
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Definition
| Slowdown in the pace of economic activity in a business cycle |
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Term
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Definition
| increases in price level resulting from high resource costs, caused by reduction in aggregate supply. |
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Term
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Definition
| Caused by insufficient total spending |
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Term
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Definition
| Decline in economy's price level |
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Term
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Definition
| Increases in the price level resulting from excess demand of a product |
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Term
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Definition
| Amount of capital worn out |
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Term
| Disposable Personal Income |
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Definition
| personal income - personal taxes. Income avaliable for consumption/saving. |
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Term
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Definition
| Phase of business cycle in which real GDP, income, and employment rise |
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Term
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Definition
Adds all expenditures made for final goods and services to measure GDP.
*Personal Consumption expenditures + Gross private domestic investment + Govt Purchases + Net Exports |
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Term
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Definition
| Goods that have been purchased for final use |
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Term
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Definition
| caused by workers voluntarily changing jobs, temp lay offs, or just inbetween jobs. |
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Term
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Definition
| 1. Use of all resources. 2. unemployment rate is equal to full employment unemployment rate, no cyclical unemployment. |
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Term
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Definition
| gov goods/servies consumed and provided for the public |
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Term
| Gross Domestic Product (GDP) |
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Definition
| total market value of all final goods and services produced annualy within the boundaries of a country. |
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Term
| Gross Private Domestic Investment |
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Definition
| Expenditures for capital goods and additions to inventories |
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Term
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Definition
The method that adds up all the income generated by the production of fianl goods used to measure GDP
*Compensation of employees, rents, interest, proprietors income, corporate profits, taxes on production/imports |
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Term
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Definition
| rise in general level of prices in an economy |
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Term
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Definition
| Products that are purchased for resale for further processing or manufacturing |
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Term
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Definition
| 16 and older, not institutionalized, and are employed, or unemployed and seeking work |
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Term
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Definition
| Wrongly including value of intermediated goods in the GDP, resulting in counting a product twice |
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Term
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Definition
| Total income earned by resource suppliers for contributions to GDP. = taxes + imports + sum of wages/interest/rent/proprietors/taxes |
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Term
| Natural rate of unemployment |
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Definition
| No cyclical unemployment and economy is achieving potential output. |
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Term
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Definition
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Term
| Net Private Domestic Investment |
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Definition
| GDPI - Consumption of fixed capital, the addition to the nation's stock of capital during a year. |
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Term
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Definition
| measure in terms of price level at that time. not adjusted for inflation |
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Term
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Definition
| number of dollars recieved by an individual or group during some period of time |
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Term
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Definition
| any 1 percentage point rise in unemployment will increase the GDP gap by 2 percent of the GDP of an economy |
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Term
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Definition
| Point in a business cycle at which business activity has reached temp max. Full employment and real output almost to capacity. |
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Term
| Personal Consumption Expenditures |
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Definition
| Expenditures of households for durable and nondurable consumer goods and services |
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Term
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Definition
| Earned/unearned income available to resource suppliers and others before payment of taxes |
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Term
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Definition
| adjusted for in flation. GDP in year divided by GDP price index for that year. |
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Term
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Definition
| Amount of goods/services that could be purchased w/ nominal income during some period of time |
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Term
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Definition
| Period of declining real GDP accompanied by lower real income and high unemployment |
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Term
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Definition
| Speedup in economic activity that occurs after a trough |
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Term
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Definition
Provides quantitative grasp of the effect of economic growth.
* 70/annual % rate of growth |
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Term
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Definition
| Unemployment of workers whose skills are not demanded, lack skills, or cannot move to available jobs. |
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Term
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Definition
| Everything bottoms out and turning point for expansion |
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Term
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Definition
| percent of labor force unemployed at given time |
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