Term
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Definition
| The study of how households and firms make decisions and how they interact in markets. |
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Term
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Definition
| The study of economy-wide phenomena, including inflation, unemployment, and economic growth. |
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Term
| Gross Domestic Product (GDP) |
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Definition
| The market value of all final goods and services produced within a country in a given period of time. |
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Term
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Definition
| Spending by households on goods and services, with the exception of purchases of new housing. |
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Term
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Definition
| Spending on capital equipment, inventories, and structures, including household purchases of new housing. |
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Term
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Definition
| Spending on goods and services by local, state, and federal governments. |
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Term
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Definition
| Spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports). |
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Term
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Definition
| The production of goods and services valued at current prices. |
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Term
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Definition
| The production of goods and services valued at constant prices. |
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Term
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Definition
| A measure of the price level calculated as the ratio of nominal GDP to real GDP times 100. |
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Term
| Consumer Price Index (CPI) |
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Definition
| A measure of the overall cost of the goods and services bought by a typical consumer. |
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Term
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Definition
| The percentage change in the price index from the preceding period. |
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Term
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Definition
| A measure of the cost of a basket of goods and services bought by firms. |
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Term
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Definition
| The automatic correction by law or contract of a dollar amount for the effects of inflation. |
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Term
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Definition
| The interest rate as usually reported without a correction of the effects of inflation. |
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Term
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Definition
| The interest rate corrected for the effects of inflation. |
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