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Flashcards in Chapter 12 Deck (23):
1

gross domestic product

market value of final goods and services produced in set time period

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nominal GDP

price levels for the year in which GDP is measured

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real GDP

GDP adjusted for changes in prices

4

gross national product (GNP)

market value of final goods and services

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net national product (NNP)

GNP minus depreciations of capital stocks

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national income (NI)

total income from production of goods and services

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personal income (PI)

income received by people from all sources

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disposable person income (DPI)

personal income minus income taxes

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business cycle

series of periods of expanding and contracting activity

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expansion

stage 1 of the business cycle, period of economic growth, increase in real GDP

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peak

stage 2 of the business cycle, the point at which real GDP is highest

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contraction

stage 3 of the business cycle, producers cut back and unemployment increases

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recession

contraction lasting two or more quarters

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depression

long period of high unemployment

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stagflation

stagnation in business activity with inflation of prices

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trough

stage 4 of the business cycle, the point at which real GDP and employment stop declining

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aggregate demand

total amount of products that might be bought at every level

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aggregate supply

sum of all goods and services that might be provided at every price level

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macroeconomic equilibrium

aggregate demand equals aggregate supply

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economic indicators

measures for predicting changed in business cycle

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leading indicators

measures that usually change before real GDP

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coincident indecators

measures that usually change at same time as real GDP

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lagging indicators

measures that usually change after real GDP