Unit 3 Macroeconomics Flashcards
(15 cards)
GNP (Gross National Product)
total goods and services produced not limited to physical border
GDP (Gross Domestic Product)
total of goods and services produced within physical borders, the nation’s income
intermediate products
goods that are already counted in GDP like parts of a car
underground economy
economic activities that are not reported and not taxed excluded from the GDP
wealth
total market value of all physical and intangible assets owned minus all debt
assets
homes, land, cash, retirement funds, stocks, bonds, life insurance, unincorporated businesses
recession
a form of instability that reverses economic growth, and when business is somewhat below normal
inflation
a general increase in prices and fall in the purchasing value of money
the FED
the nation’s central bank
reserve requirement
banks maintain a portion of deposits in case of emergency or need
supply side economics
economic growth is created by lowering business tax and decreasing regulation for an increase in supply
Keynesian economics
government increases demand by reducing taxes, increasing government spending through public works and lower interest rates
protectionism
protecting domestic producers against foreign competition through various barriers of trade
embargo
prohibits trade for political, moral, or environmental protest on a country’s actions. AKA “trade sanctions”
globalization
specializing in certain goods and using division of labor to reach the most efficient use of resources
