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| The structure of economy activity in a community, region , a country, a group of countries, or the world |
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| Market value of all final goods and services produced in the nation during a particular pd. Usually a year |
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| Market value of all final goods and services produced in the world during a particular pd. Usually a year |
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| a measure of something over and interval of time, such as your spending per week |
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| a measure of something at a particular point in time, such as the amount of money you have with you right now |
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| the incorrect theory that a nation’s economic objective should be to accumulate precious metals in the public treasury, this theory prompted trade barriers to cut imports, but other countries retaliated reducing trade and the gains from specialization |
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| A period during which the economy grows as reflected by rising output, employment, income, and other aggregate measures |
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| A period during which the economy declines as reflected by falling output, employment, income, and other aggregate measures |
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| A severe and prolonged reduction in activity as occurred during the 1930s |
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| A period of decline in economic activity lasting more than a few months, as reflected by falling output, employment, income, and other aggregate measures. Official measure is three months |
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| Increase in economy’s avg price level |
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| Leading economic indicators: |
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| Variables that predict, or lead to, a recession or recovery; examples include consumer confidence, stock market prices, business investment, and big ticket purchases, such as automobiles and homes |
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| Coincident economic indicators: |
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| Variables that reflect peaks and troughs in economic activity as they occur; examples include employment, personal income, and industrial production |
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| Lagging economic indicators: |
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| Variables that follow or trail changes in overall economic activity. Examples include the interest rate and the avg duration of unemployment |
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| a composite measure of all final goods and services produced in an n economy during a given period: real GDP |
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| the relationship between the economys price level and the quantity of aggregate output demanded (other things constant) |
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| a composite measure reflecting prices of all goods and services in the economy relative to prices in a base year |
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| real gross domestic product |
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| the economys aggregate output measured in dollars of constant purchasing power |
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| a curve representing the relationship between the economys price level and real GDP demanded per period |
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| a curve representing the relationship between the economys price level and real GDP supplied per period (other things constant) |
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| a plan for fed government outlays and revenues of a specific period, usually a year |
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| a flow variable that measures the amount by federal government outlays exceed federal govt revenues in a particular period, usually a year |
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| macroeconomic policy that focuses on shifting the aggregate demand curve as a way of promoting full employment and price stability |
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| (government spending and taxes) and monetary policies |
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| a contraction or stagnation of a nations output accompanied by inflation in the price level |
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| Expenditure Approach to GDP |
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| Calculating GDP by adding up spending on all final goods and services produced in the nation during the year |
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| Calculating GDP by adding up all earnings from resources used to produced output in the nation during the year |
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| Goods and services sold to final, or end, users |
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| Intermediate goods and services |
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| Goods and service purchased by firms for further reprocessing and resale |
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| The mistake of including both the value of intermediate products & the final value of final products in calculating GDP; counting the same production more than once |
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| Household purchases of final goods and services, except for new residences, which count as investment |
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| The purchase of new plants, equipment, buildings, & residences plus net additions to inventories |
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| Manufactured items used to produce goods and services; include new plants and new equipment |
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| Building new homes or dwelling places |
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| Producers stocks of finished and in process goods |
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| Spending for goods and services by all levels of government; govt outlays minus transfer payments |
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| The value of a countrys exports minus the value of its imports |
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| Total spending on final goods and services in an economys during a given perod, usually a year |
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| All earnings of resource suppliers in an economy during a given period, usually a year |
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| Those 16 years of age and older who are either working or looking for work |
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| The number unemployed as a percentage of the labor force |
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| Those who drop out of labor force in frustration because they can’t find work |
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| Labor force participation rate |
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| The labor force as a percentage of the adult population |
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| Those looking for work for 27 weeks or longer |
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| Unemployment that occurs because job seekers and employers need time to find each other |
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| Unemployment caused by seasonal changes in the demand for certain kinds of labor |
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| Unemployment because 1) the skills in demand do not match those of the unemployed, or 2) the unemployed do not live where the jobs are |
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| Unemployment that fluctuates with the business cycle, increasing during contractions and decreasing during expansions |
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| Employment level when there is no cyclical unemployment |
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| Cash transfers for those who lose their jobs and actively seek employment |
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| Workers are overqualified for their jobs or work fewer hours than they would prefer |
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| A very high rate of inflation |
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| A sustained decrease in the price level |
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| A reduction in the rate of inflation |
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| a sustained rise in the price level caused by a rightward shift of the aggregate demand curve |
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| a sustained rise in the price level caused by a leftward shift of the aggregate supply curve |
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| the dollar amount paid by borrowers to lenders |
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| interest per year as a percentage of the amount loaned |
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| the interest rate expressed in current dollars as a percentage of the amount loaned; the interest rate on the loan agreement |
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| the interest rate expressed in dollars of constant purchasing power as a percentage of the amount loaned; the nominal interest rate minus the inflation rate |
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| Cost of living adjustments; the increase in a transfer payment or wage that reflects the increase in the price level |
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| The quantity of goods and services produced from each unit of labor input |
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| The stock of equipment and structures that are used to produce gods and services |
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| The knowledge and skills that workers acquire through education, training, and experience |
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| The inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits |
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