Econ Unit 4, Quiz #1

Term
1 / 16
macroeconomics
Click the card to flip 👆
Terms in this set (16)
macroeconomics
a term meaning "large economics" that covers large-scale economic issues. While a single company has employees, a nation has a national employment rate. While a single firm produces a set of goods or services, a nation has a Gross Domestic Product (GDP), which is the sum of all goods and services produced.
Image: macroeconomics
Gross Domestic Product (GDP)
refers to the total market value of all final goods and services produced within a country in a given time period. It is the sum of consumer spending, investment in business, government expenditures, and net exports.
Image: Gross Domestic Product (GDP)
consumer spending
spending by households on goods and services, with the exception of purchases of new housing
Image: consumer spending
investment in business
Business spending for facilities and equipment.
Image: investment in business
government expenditures
Spending by federal, state, and local governments on goods and services
net exports
refers to the value of a country's exports minus the value of a country's imports in a given time period
Image: net exports
per capita GDP
a nation's gross domestic product (GDP) divided by its total population
Image: per capita GDP
real GDP
GDP expressed in constant, or unchanging, prices (adjusted for inflation)
business cycle
The economy goes through a cycle of expansion and contraction
Image: business cycle
peak
the highest point in the business cycle, marking the end of an economic expansion and the start
of a contraction in the business cycle.
Image: peak
contractiona stage in the business cycle in which the economy as a whole is in decline.troughthe lowest point in the business cycle, marking the end of an economic contraction and the start of a recovery.recoverya stage in the business cycle that signals the beginning of economic growth and the end of a recession.expansiona stage in the business cycle in which the economy as a whole grows until it reaches a peak.recessiona decrease in total output that lasts for at least two consecutive quarters of a year.depressiona long downturn in economic activity in one or more than one economy

Flickr Creative Commons Images

Some images used in this set are licensed under the Creative Commons through Flickr.com.
Click to see the original works with their full license.