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Cards In This Set
| Front | Back |
|
National
income accounting
|
A system
that collects statistics on production, income, investment, and savings
|
|
Gross domestic
product (GPD)
|
Dollar
value of all final goods and services produced within a country’s borders in a given
year
|
|
Intermediate
goods
|
·
used in production of final goods
|
|
Durable
goods
|
Goods that
last for 3 + years
|
|
Nondurable
goods
|
Goods that
last for less than 3 years
|
|
Nominal
GDP
|
·
GDP measured in current prices (“current GDP”)
|
|
Real
GDP
|
GDP expressed
in constant or unchanging prices
|
|
Gross
national product (GNP)
|
Annual
income earned by U.S. – owned firms and U.S. citizens
|
|
Depreciation
|
Loss of
the value of capital equipment that results from normal wear and tear
|
|
Price level
|
Average
of all prices in economy
|
|
Aggregate
demand
|
Amount
of goods/services in the economy that will be purchased at all possible price
levels
|
|
Aggregate
supply
|
Total amount
of goods/services in economy available at all possible price levels
|
|
Business
cycle
|
Period
of macroeconomic expansion followed by a period of contraction
|
|
Expansion
|
Period
of economic growth as measured by a rise in real GDP
|
|
Economic
growth
|
Steady,
long-term increase in real GDP
|
