Econ Chpt 12 Vocab

System that collects macroeconomic statistics on production, income, investment,and savings.

The dollar value of all final goods and services produced within a country's borders in a given year.

Goods used in the production of final goods.

Goods that last for a relatively long time, such as refrigerators, cars, and DVD players.

Goods that last a short period of time, such as food, light bulbs, and sneakers.

GDP measured in current prices.

GDP expressed in constant, or unchanging, prices.

The annual income earned by U.S.-owned firms and U.S. citizens.

The loss of the value of capital equipment that results from normal wear and tear.

The average of all prices in the economy.

The total amount of goods and services in the economy available at all possible price levels.

The amount of goods and services in the economy that will be purchased at all possible price levels.

Period of time of macroeconomic expansion followed by a period of contraction.

Period of economic growth as measured by a rise in real GDP.

A steady, long-term increase in real GDP.

The height of an economic expansion, when real GDP stops rising.

Period of economic decline marked by falling real GDP.

Lowest point in an economic contraction, when real GDP stops falling.

A prolonged economic contraction.

A recession that is especially long and severe.

A decline in real GDP combined with a rise in the price level.

Key economic variables that economists use to predict a new phase of a business cycle.

Real GDP divided by the total population.

Process of increasing the amount of capital per worker.

Income not used for consumption.

The proportion of disposable income that is saved.

An increase in efficiently gained by producing more output without using more inputs.