Term
| national income accounting |
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Definition
| the techniques used to measure the overall production of the economy and other related variables for the nation as a whole |
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Term
| gross domestic product (GDP) |
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Definition
| the total market value of all final goods and services produced annually within the boundaries of the US, whether by US or foreign supplied resources |
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Definition
| products that are purchased for resale or further processing or manufacturing |
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Definition
| goods and services taht have been purchases for final use and not for resale or further processing or manufacturing |
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Definition
| wrongly including the value of intermediate goods in the GDP; counting the same good or service more than once |
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Definition
| the value of the product sold by a firm less the value of the products (materials) purchased and used by the firm to produce the product |
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Definition
| the method that adds all expenditures made for final goods and services to measure the GDP |
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Definition
| the method that adds all the income generated by the production of final goods and servifes to measure the GDP |
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Term
| personal consumption expenditures (C) |
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Definition
| the expenditures of hosuesholds for durbale and nondurable consumer goods and services |
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Term
| gross private domestic investment (I g) |
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Definition
| expenditures for newly produced capital goods (such as machinery, equipment, tools, and buildings) and for additions to inventories |
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Term
| net private domestic investment |
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Definition
| gross private domestic investment less consumption of fixed capital; the additon to the nation's stock of capital during a year |
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Definition
| expenditures by government for goods and services that govt consumes in providing public goods and for public capital that has a long lifetime; the expenditures of all govts in the economy for those final goods and services |
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Term
| taxes on production and imports |
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Definition
| a national income accounting category that includes such taxes as sales, excise, business property taxes, and tariffs which firms treat as costs of producing a product and passo on to buyers by charging a higher price |
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Term
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Definition
| total income earned by resource suppliers for their contributions to GDP plus taxes on production and imports; the sume of wages and salries, rent, interest, profit, proprietors' income, and such taxes |
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Term
| consumption of fixed capital |
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Definition
| an estimate of the amoutn of capital worn out or used up (Consumed) in producing the GDP; depreciation |
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Term
| net domestic product (NDP) |
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Definition
| GDP less the part of the years output that is needed to replace the capital goods worn out in producing the output; the nations total output available for consumption or additions to the capital stock |
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Term
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Definition
| the earned and unearned income available to resource suppliers and otheres before the payment of personal taxes |
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Definition
| personal income less personal taxes; income available for personal consumption expenditures and person saving |
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Definition
| the GDP measured in terms of the pirce level at the time of measurement (unadjusted for inflation) |
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Definition
| gross domestic product adjusted for inflation |
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Definition
| an index number that shoes how the weighted-average price of a "market basket" of goods changes over time |
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Term
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Definition
| an increase of reap output (GDP) or real output per capita, result in an outward shift in the PPC |
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Definition
| inflation-adjusted output per person; real GDP/population |
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Term
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Definition
| a method for determining the number of years it will take for some measure to double, given its annual percentage increase (Divide 70 by annual rate of inflation to get the number of eyars it will take price level to double) |
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Term
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Definition
| the historically recent phenomenon in which nations for the first time have experienced sustained increases in real GDP per capita |
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Term
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Definition
| countries that develop and use advanced technologies, which then become available to follower countries |
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Term
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Definition
| as it relates to economic growth, countries that adopt advanced technologies that previous were developed and use by leader countries |
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Term
-Increases in the quantity and quality of natural resources
-Increases in the quantity and quality of human resources
-Increases in the supply (or stock) of capital goods
-Improvements in technology |
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Definition
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Term
| to achieve the higher production potential created by the supply factors, households, businesses, and government must purchase the economy's expanding output of goods and services |
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Definition
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Term
| to reach its full production potential, an economy must achieve economic efficiency as well as full employment |
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Definition
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Definition
| total output divided by the quantity of labor employed to produce it; the average product of labor or output per hour of work |
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Term
| labor-force participation rate |
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Definition
| the percentage of the working-age population that is actually in the labor force |
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Definition
| the bookkeeping of the supply-side elements such as productivity and labor inputs that contribute to changes in real GDP over some specific time period |
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Definition
| the capital goods usually provided by the public sector for the use of its citizens and firms (highways, bridges, transit sistems, airports, etc) |
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| the knowledge and skills that make a person productive |
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| reductiosn in the average total cost of producing a product as the firm expands the size of plant (its output) in the long run; the economies of mass production |
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Definition
| new and more efficient methods of delivering and receiving info through use of computers, fax, wireless phones, and internet |
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Term
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Definition
| a new firm focused on creating and introducting a particular new product or employing a specific new production or distribution method |
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Definition
| an increase in a firm's output by a larger percentage than the percentage increase in its inputs |
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Definition
| increases in the value of a product to each user, including existing users, as the total number of users rises |
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Definition
| achieving greater productivity and lower average total cost through gains in knowledge and skill that accompany repetition of a task; a source of economies of scale |
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Definition
| recurring increases and decreased in the level of economic activity over periods of years; consists of peak, recession, trough, and expansion phases |
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Definition
| the point in a business cycle at which business activity has reached a temporary max; the economy is near or at full employment and the level of real output is at or very lose to the economy's capacity |
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Definition
| a period of declining real GDP, accompanies by lower real income and higher unemployment |
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Definition
| the point in a business cycle at which business activity has reached a temporary maximum; the point at which a recession has ended and an expansion (recovery) begins |
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Term
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Definition
| a phase of the business cycle in which real GDP, income, and employment rise |
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Definition
| persons 16 years of age and older who are not in institutions and who are employed or are unemployed and seeking work |
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Definition
| the percentage of the labor force unemployed at any time |
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Definition
| persons 16 years of age and older who are not in institutions and who are employed or are unemployed and seeking work |
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Definition
| a type of unemployment caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs |
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Definition
| employees who have left the labor force because they have not been able to find employment |
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Definition
| unemployment of workers whose skills are not demanded by employers, who lack sufficient skill to obtain employment, or who cannot easily move to locations where jobs are available |
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Definition
| a type of unemployment caused by insufficient total spending (or by insufficient aggregate demand) |
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Term
| full-employment rate of unemployment, or natural rate of unemployment (NRU) |
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Definition
| the unemployment rate at which there is no cyclical unemployment of the labor force; equal to between 4-5% in the US because some frictional and structural unemployment is unavoidable |
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Definition
| the real output (GDP) an economy can produce when it fully employs its available resources |
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Term
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Definition
| actual GDP minus potential output; may be either a positive amount (positive GDP gap) or negative amount (negative GDP gap) |
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Definition
| the generalization that any 1 % point rise in the unemployment rate about the full-employment unemployment rate is associated with a rise in the negative GDP gap by 2 percent of potential output (potential GDP) |
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Term
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Definition
| a rise in the general level of prices in an economy |
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Term
| Consumer Price Index (CPI) |
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Definition
| an index that measures the prices of a fixed "market basket" of some 300 gods and services bought by a "typical" consumer |
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Term
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Definition
| increases in the price level (inflation) resulting from an increase in resource costs (for example, raw-material prices) and hence in per-unit production costs; inflation caused by reductions in aggregate supply |
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Term
| per-unit production costs |
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Definition
| the average production cost of a particular level of output; total input cost didved by units of output |
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Definition
| increases in the pirce level (inflation) resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand |
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Definition
| the number of dollars received by an individual or group for its resources during some period of time |
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Term
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Definition
| the amoutn of goods and services that can be purhcased with nominal income during some period of time; nominal incoem adjusted for inflation |
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Term
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Definition
| increases in the price level (inflation) at a rate greater than expected |
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Term
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Definition
| increases in the price level (inflation) that occur at the expected rate |
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Term
| cost-of-lving adjustments (COLAs) |
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Definition
| an automatic increase in the incomes (wages) of workers when inflation occurs; guaranteed by a collective bargaining contract between firms and workers |
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Term
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Definition
| the interest rate expressed in dollars of constant value (adjusted for inflation) and equal to the nominal interest rate less the expected rate of inlfation |
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Term
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Definition
| the interest rate expressed in terms of annual amounts currently charged for interest and not adjusted for inflation |
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Definition
| a decline in the economy's price level |
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Term
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Definition
| a very rapid rise in the price level; an extremely high rate of inflation |
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