Term
|
Definition
the focus is on the behaviors, motives of individual decision makers
(in markets) and the interaction between them |
|
|
Term
|
Definition
| concentrates on the behavior, performance of the overall economy. |
|
|
Term
|
Definition
measures two things at once: the total income
of a nation and the total expenditures on the economy's output of goods and services. |
|
|
Term
|
Definition
measures an economy’s total expenditure on goods and services and the total income
earned from the production of these goods and services. |
|
|
Term
|
Definition
include households' spending on final goods and
services, with the exception of purchases of new housing. |
|
|
Term
|
Definition
include spending on new equipment and structures by
firms, and households’ purchases of new housing. |
|
|
Term
|
Definition
include spending on final goods and services by local,
state, and federal governments. |
|
|
Term
|
Definition
equal the value of goods and services produced domestically
and sold to foreign buyers (X) minus the value of goods and services produced abroad
and sold to domestic buyers (M). |
|
|
Term
|
Definition
|
|
Term
|
Definition
is an economy’s output of goods and services calculated by using current
prices. |
|
|
Term
|
Definition
uses constant or some base-year prices to
measure an economy’s output of goods and services. |
|
|
Term
two possibilities for total
expenditures to rise from one year to the next. |
|
Definition
- The economy may be producing a larger output of goods and services.
- Goods and services could be selling at higher prices. |
|
|
Term
|
Definition
is an index that measures the changes in overall prices (changes in
cost of living) in the economy. The rate of change in the GDP Deflator reflects the
inflation (or the deflation) rate in the economy. |
|
|
Term
|
Definition
Nominal GDP
GDP Deflator = --------------------- x 100
Real GDP |
|
|
Term
|
Definition
Nominal (Real ) GDP per capita =
Nominal (Real) GDP
---------------------------------
Population |
|
|
