| Term | Definition |
|---|
| national income accounting | a system economists use to collect and organize macroeconomic statistics on production, income, investment, and savings |
| gross domestic product | the dollar value of all final goods and services produced within a country's borders in a given year |
| intermediate goods | products used in the production of final goods |
| durable goods | those goods that last for a relatively long time, such as refrigerators, cars, and DVD players |
| nondurable goods | those goods that last a short period of time, such as food, light bulbs, and sneakers |
| nominal GDP | GDP measured in current prices |
| real GDP | GDP expresses in constant, or unchanging, prices |
| gross national product | the annual income earned by a nation's firms and citizens |
| depreciation | the loss of the value of capital equipment that results from normal wear and tear |
| price level | the average of all prices in the economy |
| aggregate supply | the total amount of goods and services in the economy available at all possible price levels |
| aggregate demand | the amount of goods and services in the economy that will be purchased at all possible price levels |
| business cycle | a period of macroeconomic expansion followed by one of macroeconomic contraction |
| expansion | a period of economic growth as measured by a rise in real GDP |
| economic growth | a steady, long-term increase in real GDP |
| peak | the height of an economic expansion, when real GDP stops rising |
| contraction | a period of economic decline marked by falling real GDP |
| trough | the lowest point of an economic contraction, when real GDP stops falling |
| recession | a prolonged economic contraction |
| depression | a recession that is especially long and severe |
| stagflation | a decline in real GDP combined with a rise in the price level |
| leading indicators | a set of key economic variables that economists use to predict future trends in a business cycle |
| real GDP per capita | real GDP divided by the total population of a country |
| capital deepening | the process of increasing the amount of capital per worker |
| saving | income not used for consumption |
| savings rate | the proportion of disposable income that is saved |
| technological progress | an increase in efficiency gained by producing more output without using more inputs |
Combine with other sets
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