Economics C12: GDP & Growth
Terms
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- What is National Income Accounting?
- A system that collects statistics on production, income, investment, and savings.
- What is Gross Domestic Product (GDP)?
- The dollar value of all final goods and services produced within a country's borders in a calendar year.
- What are Intermediate Goods?
- Goods used in the production of Final products.
- What are Durable Goods?
- Those goods that last for a relatively long time.
- What are Nondurable Goods?
- Those goods that last a short period of time
- What is Nominal GDP?
- GDP measured in current prices or "Current GDP"
- What is Real GDP?
- GDP expressed in constant, or unchanging, prices.
- What is the Gross National Product (GNP)?
- The annual income earned by U.S. owned firms and U.S. Citizens both inside & outside the country.
- What is Depreciation?
- The loss of the value of capital equipment that results from normal wear and tear.
- What is Net National Product (NNP)?
- A measure of the net output for one year, or the output made after the adjustment for depreciation.
- What is the Price Level?
- The average of all prices in the economy.
- What is Aggregate Supply?
- The total amount of goods and services in the economy available at all possible price levels.
- What is Aggregate Demand?
- The amount of goods and services in the economy that will be prchased at all possible price levels
- What is a Business Cycle?
- A period of macroeconomic expansion followed by a period of contracton.
- What is an economic Expansion?
- A period of economic growth as measured by a rise in real GDP.
- What is Economic Growth?
- A steady,long-term increase in real GDP.
- What is a Peak?
- The height of economic expansion.
- What is a Trough?
- The lowest point in an economic contraction, when real GDP stops falling.
- What is a Recession?
- A prolonged economic contraction generally lasting from 6-8 months & marked by unemployment rising into a 6-10% range
- What is a Depression?
- A deep recession with features such as high unemployment and low factory output.
- What is Stagflation?
- A decline in real GDP (output) combined with a rise in the price level (inflation).
- What are Leading Indicators?
- Key economic variables that economists use to predict a new phase of a business cycle
- What is Real GDP Per Capita?
- Real GDP divided by the total population. As long as GDP rises faster than the population, so too will the standard of living & ___?_____
- What is Capital Deepening?
- The process of increasing the amount of capital per worker.
- What is Saving?
- Income that is not used for consumption.
- What is the Savings Rate?
- The proportion of disposable income that is saved
- What is Technological Progress?
- An increase in efficiency gained by producing more output without using more inputs.