# Ch 23-24

## Terms

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- Real interest rate
- interest rate corrected with effects of inflation
- Gov purchases
- spending on g & s by local, states, and federal govs
- GDP Deflator
- measure of price level calculated as ratio of nominal GDP to real GDP
- Nominal GDP
- production of g & s valued at current prices
- CPI
- measure of overall cost of g & s bought by typical consumer
- Producer price index
- measure of cost of basket of g & s bought by firms
- Consumption
- spending by households on g & s with exception of purchases of new housing
- Investment
- spending on capital equipment, inventories, and structures, including household purchases of new housing
- Real GDP per capita (person)
- Tells us income and expenditure of the avg person in economy (measure of economic well-being)
- Inflation rate
- percentage change in price index from proceeding period
- Nominal interest rate
- interest rate as usually reported without correction of the effects of inflation
- Real GDP
- production of g & s valued at constant prices
- GDP
- market value of all final g & s produced within a country in given time period