Term
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Definition
| Household spending on goods and services |
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Term
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Definition
| payments by the government to individuals for which no good or service is provided in return |
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Term
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Definition
| income plus government transfers minus taxes, is the total amount of household income available to spend on consumption and to save |
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Term
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Definition
| spending on productive physical capital such as machinery and construction of structures |
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Term
| 3 steps to the good producing process |
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Definition
| Raw, Intermediate goods and services, final goods and services |
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Term
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Definition
| the sum of consumer spending, investment spending,government purchases, and exports minus imports |
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Term
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Definition
| is the value of its sales minus the value of its purchases |
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Term
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Definition
| difference between the value of exports and the value of imports |
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Term
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Definition
| Measures size of economy, gives a scale to compare years |
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Term
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Definition
| total value of all final goods and services produced in the economy during a given year calculated using the prices of a selected base year. |
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Term
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Definition
| total value of all final goods and services prodcued in the economy during a given year calculated using the prices current in the year in which the output is produced |
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Term
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Definition
| percentage change per year in a price index |
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Term
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Definition
| measures the cost of the market basket of a typical family |
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Term
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Definition
| measures changes in the prices of goods purchased by producers |
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Term
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Definition
| 100x the ratio of nominal GDP to real GDP in that year |
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Term
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Definition
| when aggregate output is above potential output |
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Term
| in the long run the economy is |
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Definition
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Term
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Definition
| when aggregate output is below potential output |
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Term
| long-run macroeconomic equilibrium |
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Definition
| when the point of short run macroecon equilibrium is on the long-run aggregate supply curve |
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Term
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Definition
| even that shifts the short-run aggregate supply curve(know examples) |
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Term
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Definition
| the price calculated as a percentage of the amount borrowed |
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Term
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Definition
| change in the aggregate price level is the effect on consumer spending caused by the effect of a change in the aggregate price level. |
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Term
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Definition
| shows the relationship between the aggregate price level and the quantity of aggregate output demanded by households |
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Term
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Definition
| the level of real GDO the economy would produce if all prices including nominal wages were fully flexible |
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Term
| long-run aggregate supply curve |
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Definition
| relationship between the aggregate price level and the quantity of aggregate output supplied that would exist if all prices were flexible |
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Term
| short run aggregate supply cruve |
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Definition
| relationship shown when everything is fixed |
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Term
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Definition
| aggregate price level is changing slowly |
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Term
| nominal vs real measurement |
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Definition
nominal: has not been adjusted for changes in price over time.
Real: Has been adjusted |
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Term
| Monetary Policy vs Fiscal Policy and what type of policy |
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Definition
together they are a stabilization policy
Monetary:changes in money circulated
Fiscal:changes in taxation and government spending |
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Term
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Definition
| economies total production of goods and services |
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Term
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Definition
| people working at a lesser job then they would work in a good economy |
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Term
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Definition
| percentage of the total number of people in the labor force who are unemployed |
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Term
Unemployment
Discouraged Workers
Labor Force |
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Definition
Unemply: people looking but cant find work
Discouraged:people who have given up looking for work
Labor Force:sum of employed and unemployed |
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Term
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Definition
| Depression is a very deep and prolonged downturn where are recession is when employment is falling |
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