Term
| Cause of the Great Depression |
|
Definition
| poor economic policymaking both in the usa and other major industrialized countries. |
|
|
Term
|
Definition
| the adding up of individual economic variables to obtain economywide totals |
|
|
Term
|
Definition
| The market value of the final goods and services produced in a country during a given period |
|
|
Term
|
Definition
| Goods or services consumed by the ultimate user; end products of the production process. |
|
|
Term
|
Definition
| purchases by federal, state, and loval governments of final goods and swervices; government purchases DO NOT INCLUDE transfer payments, or payments to the people or interest. |
|
|
Term
|
Definition
| people who say they would like to have a job but have not made an effort to find one in the last four weeks |
|
|
Term
|
Definition
| the practice of increasing a nominal quantity each period by an amount equal to the percentage increase in a specific price index. prevents the purchasing power of the nominal quantity from being eroded by inflation |
|
|
Term
|
Definition
| a measure of FDP in which the quantities produced are valued at current year price the current dollar value of production |
|
|
Term
|
Definition
|
|
Term
|
Definition
| A measure of GDP in which the quantities produced are valued at the prices in a base year rather than at current prices, measures the actual physical volume of production. |
|
|
Term
|
Definition
| federal reserve and central bank |
|
|
Term
|
Definition
| structure and institutions of society |
|
|
Term
|
Definition
|
|
Term
|
Definition
| market value - cost of inputs |
|
|
Term
|
Definition
| spending on capital goods, new machines, new shopping centers, changes in inventory (end minus beginning), business fixed investment |
|
|
Term
|
Definition
| sacrifice consumption, sacrifice health and leisure, costs of aquiring R&D, and human capital |
|
|
Term
|
Definition
| talents education training, skills of workers, |
|
|
Term
|
Definition
| tools factories, machines, cause efficiency |
|
|
Term
|
Definition
| tendency for nominal interest rates to be high when inflation is high and low when inflation is low |
|
|
Term
| determinants of average labor productivity |
|
Definition
| human capital, physical capital, land and natural resources, technology, entrepreneurship and management, political and legal environment. |
|
|
Term
| inflation reduces economic efficiency through all of the following channels |
|
Definition
-distorting incentives through interaction with the tax laws
-obscuring information transmitted by prices
-inducing people to minimize cash holdings
-interfering with long term planning |
|
|
Term
| increases in output per person arise primarily from |
|
Definition
| increases in average labor productivity |
|
|
