Term
| Aggregate expenditures/spending |
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Definition
| the total spending on domestically produced final goods and services in the economy; the sum of consumer spending, investment spending, govt purchases of goods and services, and exports minus imports |
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Definition
| the economy's total production of goods and services for a given time period |
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Definition
| a measure of the overall level of prices in the economy |
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Definition
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Term
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Definition
| a loan in the form of an IOU that pays interest |
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Term
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Definition
| the method of calculating changes in real GDP using the average between the growth rate calculated using an early base year and the growth rate calculated using a late base year. |
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Definition
| measures the cost of the market basket of a typically urban American family |
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Term
| Consumer spending/personal |
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Definition
| household spending on goods and services |
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Term
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Definition
| Expenses incurred in consumption, as opposed to expenses |
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Term
| Consumption of fixed capital |
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Definition
| represents the amount of fixed assets used up, during the period under consideration, as a result of normal wear and tear and foreseeable obsolescence, including a provision for losses of fixed assets as a result of accidental damage which can be insured against. |
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Term
| Cost of living adjustments |
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Definition
| An adjustment made to Social Security and supplemental security income in order to adjust benefits to counteract the effects of inflation. |
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Term
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Definition
| the deviation of the actual rate unemployment from the actual rate |
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Term
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Definition
| general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. |
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Definition
| nonworking people who are capable of working but have given up looking for a job due to the state of the job market |
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Definition
| the process of bringing the inflation rate down |
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Term
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Definition
| income plus government transfers minus taxes; the total amount of household income avail to spend on consumption and to save |
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Term
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Definition
| wages that employers set above the equilibrium wage rate as an incentive for better employee performance |
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Term
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Definition
| people who are currently working for pay in the economy |
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Definition
| phase of the business cycle when the economy moves from a trough to a peak. It is a period when business activity surges and gross domestic product expands until it reaches a peak. |
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Term
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Definition
| an approach to calculating GDP by adding up aggregate spending on domestically produced final goods and services in the economy- the sum of the consumer spending , investment spending, govt purchase of goods and services, and exports minus imports |
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Term
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Definition
| goods and services sold to other countries |
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Term
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Definition
| where resources, especially capital and labor, are bought and sold |
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Term
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Definition
| goods and services sold to the final or end user |
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Term
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Definition
| the markets (banking, stock, and bond) that channel private savings and foreign lending into investment spending, govt borrowing, and foreign borrowing. |
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Term
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Definition
| an organization that produces goods and services for sale |
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Term
| Frictional (job search unemployment) unemployment |
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Definition
| unemployment due to the time workers spend in job search |
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Term
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Definition
| the condition in which virtually all who are able and willing to work are employed. |
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Term
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Definition
| (for a given year) 100 times the size the ratio of the nominal GDP to real GDP in that year |
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Term
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Definition
| The GDP gap or the output gap is the difference between actual GDP or actual output and potential GDP |
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Term
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Definition
| GDP divided by the size of the population; it is equivalent to the average GDP per person |
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Term
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Definition
| the amount of funds borrowed by the govt in th financial markets |
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Term
| Govt Purchases (of goods and services) |
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Definition
| total expenditures on goods and services by federal, state, and local govts |
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Term
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Definition
| payments that the govt makes to individuals without expecting a good or service in return |
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Term
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Definition
| the total value of all final goods and services produced in the economy during a given year |
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Term
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Definition
| Gross National Product. GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country. Basically, GNP measures the value of goods and services that the country's citizens produced regardless of their location. |
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Term
| Gross private domestic investment |
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Definition
| The amount of private business capital which is invested in domestic production either through the purchase of fixed property or inventory. These expenditures account for approximately 15% to 18% of the gross domestic product (GDP) in the US. |
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Definition
| a person or group of people who share income |
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Definition
| rapid rising of general price level |
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Definition
| goods and services purchased from other countries |
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Term
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Definition
| an approach to calculating the GDP by adding up the total factor income earned by households from firms in the economy, including rent, wages, interest, and profit. |
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Term
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Definition
| a rising in overall price level |
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Term
| Intermediate goods and services |
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Definition
| goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services |
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Term
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Definition
| stocks of goods ad raw materials held to facilitate business operations |
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Term
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Definition
| spending on new productive physical capital, such as machinery and structures, and on changes in inventories |
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Term
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Definition
| the number of people who are either actively employed for pay or unemployed and actively looking for work; the sum of employment and unemployment |
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Term
| Labor force participation rate |
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Definition
| the percentage of the population aged 16 plus that is in the labor force |
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Term
| Marginally attached workers |
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Definition
| would like to be employed and have looked for a job in the recent past but are not currently looking for work |
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Term
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Definition
| a hypothetical set of consumer purchases of goods and services |
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Term
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Definition
| the real costs of changing listed prices |
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Term
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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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Term
| National income (product accounts/national accounts) |
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Definition
| keep track of the flows of money among different sectors of the economy; calculated by the Bureau of Economic Analysis |
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Term
| Natural rate of unemployment |
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Definition
| the unemployment rate that arises from the effects of frictional plus structural unemployment |
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Term
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Definition
| the difference between the value of exports and the value of imports |
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Term
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Definition
| the total value of all final goods and services produced in the economy during a given year, calculated with the prices current in the year in which the output is produced |
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Definition
| the interest rate actually paid for a loan |
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Term
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Definition
| black market, babysitting |
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Term
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Definition
| whereby a percentage increase in unemployment causes a 2% fall in GDP. |
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Term
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Definition
| Per capita GDP is a measure of the total output of a country that takes the gross domestic product (GDP) and divides it by the number of people in the country. |
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Term
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Definition
| measures the cost of purchasing a given market basket in a given year; the index value is normalized so that it is equal to 100 in the selected base year |
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Term
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Definition
| disposable income minus consumer spendig, disposable income that is not spent on consumption but rather goes into financial markets |
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Term
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Definition
| measures the prices of goods and services purchased by producers |
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Term
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Definition
| where goods and services are bought and sold |
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Term
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Definition
| the total value of all final goods and services produced in the economy during a given year; calculated using the prices of a selected base year in order to remove the effects of price changes |
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Term
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Definition
| income divided by the price level to adjust for the effects of inflation or deflation |
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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
| the wage rate divided by the price level to adjust for the effects of inflation or deflation |
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Term
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Definition
| a period of economic downturn when output and employment are falling |
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Term
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Definition
| A period of increasing business activity signaling the end of a recession. |
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Term
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Definition
| occurs when people are unemployed at certain times of the year, because they work in industries where they are not needed all year round. Tourism and farming |
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Term
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Definition
| the increased costs of transactions caused by inflation |
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Term
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Definition
example tax revenue to the government.
One who follows a static economic system says if you need more tax revenue you raise taxes. |
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Term
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Definition
| a share in the ownership of a company held by a shareholder |
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Term
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Definition
| unemployment that results when workers lack the skills required for the available jobs, or there are more people seeking jobs in a labor market than there are jobs available at the current wage rate |
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Term
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Definition
| a payment made or income received in which no goods or services are being paid for, such as a benefit payment or subsidy. |
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Definition
| workers who would like to work more hours or who are overqualified for jobs |
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Term
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Definition
| people who are actively looking for work but aren't yet currently employed |
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Term
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Definition
| the percentage of the labor force that is unemployed |
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Term
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Definition
| an approach to calculating the GDP by surveying firms and adding up their contributions to the value of final goods and services |
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Term
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Definition
| potential output (also referred to as "natural gross domestic product") refers to the highest level of real gross domestic product (output) that can be sustained over the long term. |
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