Terms : Hide Images
| 15267947777 | household | a person or group of people living in the same residence | 0 | |
| 15267947778 | firm | an organization that uses resources to produce a product, which it then sells | 1 | |
| 15267950647 | product markets | where goods and services are bought and sold | 2 | |
| 15267950648 | factor markets | where resources, especially capital and labor, are bought and sold | 3 | |
| 15267954007 | consumer spending | household spending on goods and services | 4 | |
| 15267954008 | stock | a share of ownership in a company | 5 | |
| 15267961711 | bond | an IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return | 6 | |
| 15267965129 | government transfers | payments that the government makes to individuals without expecting a good or service in return | 7 | |
| 15267967699 | disposable income | income remaining for a person to spend or save after all taxes have been paid | 8 | |
| 15267970347 | private savings | equal to disposable income minus consumer spending, is disposable income that is not spent on consumption | 9 | |
| 15267974969 | government borrowing | the total amount of funds borrowed by federal, state, and local governments in the financial markets | 10 | |
| 15267978282 | government purchases of goods and services | total expenditures on goods and services by federal, state, and local governments | 11 | |
| 15267978283 | exports | goods produced domestically and sold abroad | 12 | |
| 15267978284 | imports | goods produced abroad and sold domestically | 13 | |
| 15267980820 | inventories | stocks of goods and raw materials held to facilitate business operations | 14 | |
| 15267984137 | investment spending | spending on new productive physical capital, such as machinery and structures, and on changes in inventories | 15 | |
| 15267984139 | final goods and services | goods and services sold to the final, or end, user | 16 | |
| 15267990190 | intermediate goods and services | goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services | 17 | |
| 15267990191 | Gross Domestic Product (GDP) | - the sum total of the value of all the goods and services produced in a nation - C + I + G + (X-M) | 18 | |
| 15268006439 | value added approach | survey firms and add up their contributions to the value of final goods and services | 19 | |
| 15268009169 | expenditure approach | a method of computing GDP that measures the total amount spent on all final goods and services during a given period | 20 | |
| 15268012630 | aggregate spending | the sum of consumer spending, investment spending, government purchases of goods and services, and exports minus imports, is the total spending on domestically produced final goods and services in the economy | 21 | |
| 15268016093 | income approach | a method of computing GDP that measures the income-wages, rents, interest, and profits-received by all factors of production in producing final goods and services | 22 | |
| 15268016094 | value added | the gross value of the product minus the costs of raw materials and energy | 23 | |
| 15268018904 | net exports | exports minus imports | 24 | |
| 15268023380 | circular flow diagram | a visual model of the economy that shows how dollars flow through markets among households and firms |  | 25 |
| 15268031208 | aggregate output | the economy's total production of goods and services for a given time period | 26 | |
| 15268031209 | real GDP | - GDP adjusted for inflation - calculated using base year prices | 27 | |
| 15268036769 | nominal GDP | the value of final goods and services evaluated at current-year prices | 28 | |
| 15268040039 | GDP per capita | gross domestic product divided by the number of people in the population | 29 | |
| 15268048200 | employed | - 16 or older - working 1+ hour/week | 30 | |
| 15268052176 | unemployed | - 16 or older - actively seeking work over the last 4 weeks | 31 | |
| 15268057283 | labor force | employed + unemployed | 32 | |
| 15268060787 | labor force participation rate | - the percentage of the population aged 16 or older that is in the labor force - (civilian labor force/civilian non-institutionalized population) x 100 | 33 | |
| 15268069713 | unemployment rate | - the percentage of the nation's labor force that is unemployed - (unemployed/civilian labor force) x 100 | 34 | |
| 15268075793 | discouraged workers | individuals who would like to work but have given up looking for a job | 35 | |
| 15268079105 | marginally attached workers | would like to be employed and have looked for a job in the recent past but are not currently looking for work | 36 | |
| 15268079106 | underemployment | workers are overqualified for their jobs or work fewer hours than they would prefer | 37 | |
| 15268081913 | institutionalized | - members of the armed forces - under 16 - incarcerated - physically or mentally incapable of working | 38 | |
| 15268096985 | not in civilian labor force | - over 16 - not working or actively seeking work - ex. retirees, stay at home parents, full time students, discouraged/marginally attached workers | 39 | |
| 15268120228 | frictional unemployment | - unemployment that occurs when people take time to find a job - SOLUTION: anything that connects a potential worker to a potential employer (ex. job search services, career fairs) | 40 | |
| 15268123086 | structural unemployment | - unemployment resulting from industrial reorganization, typically due to technological change, fluctuations in supply or demand, or outsourcing - SOLUTION: retraining and educational opportunities that give marketable job skills | 41 | |
| 15268131736 | efficiency wages | wages that employers set above the equilibrium wage rate as an incentive for better employee performance | 42 | |
| 15268136487 | natural rate of unemployment | the unemployment rate that arises from the effects of frictional plus structural unemployment | 43 | |
| 15268136488 | cyclical unemployment | - unemployment caused by a business cycle recession - SOLUTION: increase GDP | 44 | |
| 15268142592 | real wage | the wage measured in dollars of constant purchasing power; the wage measured in terms of the quantity of goods and services it will buy | 45 | |
| 15268146310 | inflation rate | - the percentage increase in the price level from one year to the next - ((year 2 CPI - year 1 CPI)/year 1 CPI) x 100 | 46 | |
| 15268159444 | shoe-leather costs | the increased costs of transactions caused by inflation | 47 | |
| 15268161660 | menu costs | the real costs of changing listed prices | 48 | |
| 15268164482 | unit-of-account costs | arise from the way inflation makes money a less reliable unit of measurement | 49 | |
| 15268164659 | nominal interest rate | - the interest rate actually paid for a loan - real interest rate + expected rate of inflation | 50 | |
| 15268173668 | real interest rate | - actual cost of a loan - nominal interest rate - inflation rate | 51 | |
| 15268179623 | disinflation | - the process of bringing the inflation rate down - causes higher rates of unemployment | 52 | |
| 15268185894 | deflation | a decrease in the general level of prices | 53 | |
| 15268191250 | aggregate price level | a measure of the overall level of prices in the economy | 54 | |
| 15268194850 | market basket | a hypothetical set of consumer purchases of goods and services | 55 | |
| 15268199126 | consumer price index (CPI) | a measure of the overall cost of the goods and services bought by a typical consumer | 56 | |
| 15268201970 | producer price index (PPI) | a measure of the price of goods and services purchased by producers | 57 | |
| 15268209895 | GDP deflator | - a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100 - (nominal GDP/real GDP) x 100 | 58 | |
| 15268281564 | purchasing power | the real goods and services that money can buy; determines the value of money | 59 | |
| 15268281565 | hyperinflation | a very rapid rise in the price level; an extremely high rate of inflation | 60 |
