Econ Chpt 12 Vocab

  1. National Income Accounting
    System that collects macroeconomic statistics on production, income, investment,and savings.
  2. Gross Domestic Product
    The dollar value of all final goods and services produced within a country's borders in a given year.
  3. Intermediate Goods
    Goods used in the production of final goods.
  4. Durable Goods
    Goods that last for a relatively long time, such as refrigerators, cars, and DVD players.
  5. Nondurable Goods
    Goods that last a short period of time, such as food, light bulbs, and sneakers.
  6. Nominal GDP
    GDP measured in current prices.
  7. Real GDP
    GDP expressed in constant, or unchanging, prices.
  8. Gross National Product
    The annual income earned by U.S.-owned firms and U.S. citizens.
  9. Depreciation
    The loss of the value of capital equipment that results from normal wear and tear.
  10. Price Level
    The average of all prices in the economy.
  11. Aggregate Supply
    The total amount of goods and services in the economy available at all possible price levels.
  12. Aggregate Demand
    The amount of goods and services in the economy that will be purchased at all possible price levels.
  13. Business Cycle
    Period of time of macroeconomic expansion followed by a period of contraction.
  14. Expansion
    Period of economic growth as measured by a rise in real GDP.
  15. Economic Growth
    A steady, long-term increase in real GDP.
  16. Peak
    The height of an economic expansion, when real GDP stops rising.
  17. Contraction
    Period of economic decline marked by falling real GDP.
  18. Trough
    Lowest point in an economic contraction, when real GDP stops falling.
  19. Recession
    A prolonged economic contraction.
  20. Depression
    A recession that is especially long and severe.
  21. Stagflation
    A decline in real GDP combined with a rise in the price level.
  22. Leading Indicators
    Key economic variables that economists use to predict a new phase of a business cycle.
  23. Real GDP Per Capita
    Real GDP divided by the total population.
  24. Capital Deepening
    Process of increasing the amount of capital per worker.
  25. Saving
    Income not used for consumption.
  26. Savings Rate
    The proportion of disposable income that is saved.
  27. Technological Progress
    An increase in efficiently gained by producing more output without using more inputs.
Card Set
Econ Chpt 12 Vocab
Words and defs for Econ Vocab quiz Chpt 12.