Term
| Gross Domestic Product (GDP) |
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Definition
| the value of all final goods and services produced in an economy during a year. |
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| the value of all income received by owners of labor and capital in an economy during a year. |
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| consists of all household spending on goods and services. |
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| consist of all private spending on capital goods. |
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| includes structures, durable equipement and software. Capital goods are used in production but, unlike intermediate products, theya re not immediately used up in the production process. Incestment spending is about 12 percent of GDP. |
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| consists of all government spending on goods and services, excluding transfer payments. Government spending on goods and services is about 20 percent of GDP. |
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| consists of the value of goods and services exported minus the value of goods and services imported. |
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| 55% of Gross Domestic Income. Consists of wages and salaries. |
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| 45% of Gross Domestic Income. Consists of producer income after costs of intermediate goods and employee compensation have been subtracted. |
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| producer sales revenue minus producer expenditures on intermediate products. |
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| Goods and services sold from one producer to another. |
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| current year production measured in current year prices, in symbols Y=Σpq. |
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| current year production measured in base year prices, in symbol Y=Σpbq. |
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| measured as year-to-year percentage changes in real GDP. |
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Definition
| a period of consistently rising real GDP |
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| period of consistently falling real GDP. |
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Definition
| the percentage of the labor force that is not working and is actively seeking work. |
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| people that are working or are actively seeking work, are at least 17 years old, are not in mental or penal institutions and are not in the military. |
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Definition
| the fraction of the labor force that is normally looking for work for reasons that have nothing to do with economic conditions. $4-6% of the labor force. |
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| caused by supply and demand shifts in particular sectors of the economy. |
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| caused by an economy-wide decline in production; that is, a decline in real GDP. |
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| There is a NEGATIVE correlation between changes in the unemployment rate and the real GDP growth rate. |
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| measures the general level of prices of all goods and services in GDP. The deflator is calulated as the ration of nominal to real GDP. |
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Definition
| the year-to-year percentage change the price index. |
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Definition
| refers to a rising general price level. |
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Definition
| refers to a falling general price level. |
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Definition
| purchase and sale of stocks and bonds, loan proceeds and repayments, and similar financial transactions are not payments for produced goods and services. |
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Definition
| Government pensions, welfare payments, and unemployment compensation are transfer payments. |
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Definition
| Purchase and sale of used goods are not included in GDP because they are not payments for goods and services produced during the current year. |
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Definition
| Goods and services sold by one producer to another are not included in GDP because GDP measures goods and services that leave the production sector to become available to final users. |
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Definition
| a substantial amount of production occers with households and never flows through markets. |
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Definition
| Illegal transactions are excluded from GDP accounts even if they are payments for produced goods and services. |
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