Term
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Definition
| The long-term expansion or contraction of an economy's business activities |
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Term
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Definition
| Reoccurring non-periodic fluctuations in econ and business activities. |
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Term
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Definition
| Regular variations in econ activity that occur within a year |
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Term
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Definition
| Irregular variations in econ activity that cannot be accounted or planned for |
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Term
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Definition
| That downward part of the business cycle in which output and employment falls for a minimum of six months |
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Term
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Definition
| That upward downward part of the business cycle in which output and employment rise ultimately |
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Term
| Leading Economic Indicators |
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Definition
| A monthly index of eleven econ indicators which tends to lead changes in GDP. It usually goes in the same direction with fluxuation |
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Term
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Definition
| A concept of the employment goal to be attained in an economy. It must me defined and redefined as the structure of an economy changes. |
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Term
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Definition
| A measure of unemployment of those who are moving from one job to another (transitional unemployment) |
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Term
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Definition
| The amount of unemployment associated with deficiencies in aggregate demand during recessions and troughs |
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Term
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Definition
| Unemployment due to changes in technology or in the composition of output caused by changes in consumer demand |
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Term
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Definition
| Unemployment that occurs during specific seasons of the year |
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Term
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Definition
| The difference between full-employment GDP and actual GDP achieved. |
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Term
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Definition
| The rule that for each 1% that the actual unemployment rate exceeds the natural rate, a 2.5% GDP gap results |
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Term
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Definition
| A general rise in the level of prices |
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Term
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Definition
| The rise in aggregate prices that occurs when demand increases more rapidly than supply |
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Term
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Definition
| The rise in aggregate prices that occurs when resource prices and costs increase more rapidly than factor productivity. |
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Term
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Definition
| The current flows of money incomes to individuals |
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Term
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Definition
| the current flows of money incomes to individuals expressed in terms of purchasing power |
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Term
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Definition
| The nominal interest rate minus the rate of inflation |
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Term
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Definition
| A general fall in the level of prices. |
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Term
| Inflationary Expectations |
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Definition
| The belief that inflation is inbuilt and will continue thus, leading to falling real income. |
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Term
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Definition
| A function that depicts the trade-offs between unemployment and inflation. |
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Term
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Definition
| A combination of inflation and economic stagnation |
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Term
| Natural Rate of Unemployment |
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Definition
| The rate of unemployment at which inflation neither accelerates nor decelerates (stable) |
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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 any particular year within a country |
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Term
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Definition
| An approach to national income accounting that measures the goods and services people buy |
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Term
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Definition
| An approach to national income accounting that measures the incomes generated in producing the national output |
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Term
| Personal Consumption Expenditures(C) |
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Definition
| Expenditures by consumers for durable goods, nondurable goods, and for services. |
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Term
| Gross Private Domestic Investment(I) |
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Definition
| Capital creating activities that are private in a domestic econ |
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Term
| government Expenditures(G) |
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Definition
| Purchases of goods and services by all levels of gov |
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Term
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Definition
| The difference for an economy between its exports and its imports. E > I is (+) |
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Term
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Definition
| The income payments to labor |
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Term
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Definition
| The income payments to owners of land |
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Term
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Definition
| The income payments to owners of capital |
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Term
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Definition
| The payments to entrepreneurship in incorporated and unincorporated firms. |
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Term
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Definition
| A measure of the wearing out of capital through use or obsolescence. |
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Term
| Indirect Business Taxes(T) |
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Definition
| Taxes on goods and services that are passes on to consumers |
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Term
| System of National Accounts (SNA) |
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Definition
| A system of measuring national income and product that is standardized across nations. |
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Term
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Definition
| The value of final goods and services produced expressed in the prices of the period in which they are produced |
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Term
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Definition
| The value of final goods and services produced expressed in terms of a base year's prices. |
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Term
| Net National Product (NNP) |
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Definition
| For an economy, the net value of all final goods and services produced in a particular period of time |
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Term
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Definition
| For an economy, the net income at market prices that is generated in producing all final goods and services in a particular period of time |
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Term
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Definition
| For an economy, the net income of factor prices generated in the production of all final goods and services |
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Term
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Definition
| For an economy, all incomes received by individuals in the production of final goods and services as well as from transfer payments. |
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Term
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Definition
| For an economy, those personal incomes over which individuals have control as to their uses. |
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Term
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Definition
| A method of computing the GDP in which only the prices of goods sold to final users are added |
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Term
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Definition
| A method of computing the GDP in which the values added at each stage of production are summed. |
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Term
| Equilibrium Level of Prices |
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Definition
| A level that is established where aggregate quantity demanded equals aggregate quantity supplied |
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Term
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Definition
| A measure of the entire planned spending on final goods and services at different price levels |
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Term
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Definition
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Term
| Investment in Human Capital |
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Definition
| Expenditures made on training, education, and increasing the skill levels of individuals |
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Term
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Definition
| The term used to describe an increase or decrease in aggregate demand |
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Term
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Definition
| The term used to describe an increase or decrease in aggregate supply |
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Term
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Definition
| A measure of a market basket of about 300 goods and services commonly purchased by urban consumers. Published quarterly. |
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Term
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Definition
| Cost of living Adjustments |
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Term
| External Aggregate Demand and Supply Shocks |
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Definition
| Factors external to the macro-economy that change its equilibrium levels or income, employment, and prices. |
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Term
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Definition
| A body of economic theory that concludes that full employment is the norm for a market economy and that non-intervention by gov is appropriate macro0economic policy. |
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Term
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Definition
| A body of economic theory that concludes unemployment is possible for a market economy and that significant government intervention is appropriate macro-economic policy. |
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Term
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Definition
| In its simple form, the law states that supply creates its own demand. |
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Term
| Abstinence Theory of Interest |
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Definition
| An argument that people will save because interest payments induce them to abstain from current consumption. |
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Term
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Definition
| The argument that falling prices increase people's wealth or purchasing power and cause them to consume more. |
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Term
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Definition
| A school of economic thought that held that gov should take the responsibility for maintaining economic welfare. |
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Term
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Definition
| A schedule showing the relationships between levels of income and quantities consumed during a particular period of time. |
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Term
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Definition
| A schedule showing the amounts people save at different levels of income in a particular period of time. |
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Term
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Definition
| A schedule showing the amounts investment at different levels of income in a particular period of time. |
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Term
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Definition
| The term used to describe negative savings by people in a society. |
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Term
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Definition
| Assets such as savings account or government bonds that may be quickly converted into money. |
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Term
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Definition
| Those investments not affected by changes in people's incomes and consumption. |
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Term
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Definition
| Those investments induced generated by changes in income and consumption |
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Term
| Marginal Efficiency of Capital |
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Definition
| The function that shows the quantity of investment made at each of several interest rates or the quantity that yields an expected return equal to or greater than each interest. |
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Term
| Savings-Equals-Intended-Investment Approach |
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Definition
| The determination of equilibrium income by equating savings and intended investment. |
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Term
| Aggregate-Demand-Equals-Aggregate-Supply Approach |
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Definition
| The determination of equilibrium income by equating aggregate demand and aggregate supply. |
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