Term
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Definition
| The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth. |
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Definition
| The period of a business cycle during which total production and total employment are increasing. |
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Definition
| The period of a business cycle during which total production and total employment are decreasing. |
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Term
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Definition
| The ability of an economy to produce increasing quantities of goods and services. |
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Term
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Definition
| The percentage increase in the price level from one year to the next. |
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Term
| Gross domestic product (GDP) |
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Definition
| The market value of all FINAL goods and services produced in a country during a period of time, typically one year. |
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Term
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Definition
| A good or service purchased by a final user. |
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Term
| Intermediate good or service |
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Definition
| A good or service that is an input into another good or service, such as a tire on a truck. |
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Term
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Definition
| Payments by the government to individuals for which the government does not receive a new good or service in return. |
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Term
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Definition
| Spending by households on goods and services, not including spending on new houses. |
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Term
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Definition
| Spending by firms on new factories, office buildings, machinery, and additions to inventories, and spending by households on new houses. |
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Term
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Definition
| Spending by federal, state, and local governments on goods and services. |
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Term
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Definition
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Term
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Definition
| The market value a firm adds to a product. |
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Term
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Definition
| Buying and selling of goods and services that is concealed from the government to avoid taxes or regulations or because the goods and services are illegal. |
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Term
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Definition
| The value of final goods and services evaluated at current-year prices. |
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Term
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Definition
| The value of FINAL goods and services evaluated at base-year prices. |
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Term
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Definition
| A measure of the average prices of goods and services in the economy. |
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Term
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Definition
| A measure of the price level, calculated by dividing nominal GDP by real GDP and multiplying it by 100. |
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