Ageco 3
Terms
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- Expenditures by consumers for food, non-food, nondurable goods, durable goods, and services.
- Consumption
- Expenditures on new plant and equipment by businesses, the increase in business inventories and expenditures on new residences by househo
- Investment
- Referred to as the nation’s output, GDP is equal to consumer expenditures, business investment, government spending, and net export
- Gross Domestic Product
- That part of disposable personal income not spent on current consumption.
- Saving
- Amount by which full employment GDP exceeds equilibrium GDP.
- Recessionary Gap
- Amount by which equilibrium GDP exceeds full employment GDP.
- Inflationary Gap
- Rate the Federal Reserve charges when it lends to member commercial banks
- Discount Rate
- Consists of members of the Board of Governors of the Federal Reserve System plus selected district Federal Reserve Bank presidents who me
- Federal Open Market Committee
- The reciprocal of the fractional required reserve ratio if there are no currency drains and no excess reserves.
- Money Multiplier
- Minimum amount of deposits that banks and other depository institutions must hold in reserve.
- Required Reserves
- Amount by which federal government receipts during the year exceed federal government expenditures.
- Federal budget surplus
- When government activity supplants private business activity on a dollar-for-dollar basis.
- Direct Crowding Out
- Reflects the pattern of movements in the economy’s real output, interest rates, or unemployment rate.
- Business Cycle
- Number of unemployed persons divided by the size of the total civilian labor force
- Unemployment Rate
- Sustained rise in the general price level.
- Inflation
- Indicators of changes in economic activity about one or two quarters before they occur.
- Leading Economic Indicators
- Weighted average of the prices consumers pay for goods and services.
- Consumer Price Index