national income accounting
a system that collects macroeconomic statistics on production, income, investment, and savings
gross domestic product (GDP)
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
gross national product (GNP)
the annual income earned by US-owned firms and US residents
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
a period of macro-economic expansion followed by a period of contraction
a 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
a period of economic decline marked by falling real GDP
the 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 business cycle
real GDP per capita
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 efficiency gained by producing more output without using more inputs
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