Chapter 23 Key Terms Flashcards
(21 cards)
Inflation
The rate at which prices are rising
Unemployment
Percent of the labor force that is out of work
Macroeconomics
The study of economy-wide phenomena
Microeconomics
The study of how households and firms make decisions and how they interact in markets
Total income
Wages,rent, and profit
Total expenditure
Consumption,investment, government purchases, and net exports
Gross domestic product (GDP)
Market value of all final goods and services produced within a country in a given period of time
Intermediate production
Goods that are produced by one firm to be further processed by another firm
Final production
Finished products sold to the end user
Gross national product (GNP)
Market value of all final goods and services produced by a nation’s residents in a given period of time
Depreciation
Value of worn-put equipment and structures
Consumption
Spending by households on goods and services, excluding new housing
Investment
Spending on capital equipment, inventories, and structures, including household purchases of new housing
Government purchases
Spending on goods and services by all level of government
Net export
Spending on domestically produced goods and services by all levels of government
Transfer payment
Expenditures by government for which they receive no goods or services
Real GDP
The production of goods and services valued at base year prices
Nominal GDP
The production of goods and services valued at current year prices
Base year
The year from which prices are used to measure real GDP
GDP deflator
A measure of the price level calculated as the ration of nominal GDP to real GDP then multiplied by 100
Reccession
Period of decline in GDP
