AP Economics Flashcards

509099503	inflation	the rate at which prices are rising	0
509099504	unemployment	percent of the labor force that is out of work	1
509099505	macroeconomics	the study of economy-wide phenomena	2
509099506	microeconomics	the study of how households and firms make decisions and how they interact in markets	3
509099507	total income	wages, rent, and profit	4
509099508	total expenditure	consumption, investment, government purchases, and net exports	5
509099509	gross domestic product	market value of all final goods and services produced within a country in a given period of time	6
509099510	intermediate production	goods that are produced by one firm to be further processed by another firm	7
509099511	final production	finished products sold to the end user	8
509099512	gross national product	The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.	9
509099513	depreciation	value of worn out equipment and structures	10
509099514	consumption	spending by households on goods and services, excluding new housing	11
509099515	investment	spending on capital equipment, inventories, and structures, including household purchases of new housing	12
509099516	government purchases	spending on goods and services by all levels of government	13
509099517	net exports	spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)	14
509099518	transfer payment	expenditures by government for which they receive no goods or services	15
509099519	real GDP	the production of goods and services valued at base year prices	16
509099520	nominal GDP	the production of goods and services valued at current year prices	17
509099521	base year	the year from which prices are used to measure real GDP	18
509099522	GDP deflator	a measure of the price level calculated as the ratio of nominal GDP to real GDP, then multiplied by 100	19
509099523	recession	period of decline in GDP	20