AP Flashcards
Terms : Hide Images [1]
| 8852193389 | intermediate goods | goods used in the production of final goods | 0 | |
| 8852193390 | inventory | the quantity of goods that a firm has on hand | 1 | |
| 8852193391 | Gross National Product | like GDP, but also includes income citizens earned outside the country | 2 | |
| 8852193392 | Nominal GDP | The value of final goods and services evaluated at current-year prices. | 3 | |
| 8852193393 | real GDP | the value of final output produced in a given period, adjusted for changing prices | 4 | |
| 8852205582 | price index | a number that compares prices in one year with some earlier base year | 5 | |
| 8852205583 | base year | year used as a point of comparison for other years in a series of statistics | 6 | |
| 8852318683 | business cycle | cycles of economic expansion and contraction. | 7 | |
| 8852318684 | Reccession | A period of slow business activity. | 8 | |
| 8852318685 | depression | a period when economic activity slows and unemployment increases | 9 | |
| 8852318686 | unemployment rate | the percentage of the labor force that is unemployed | 10 | |
| 8852377399 | nominal interest rate | the interest rate as usually reported without a correction for the effects of inflation | 11 | |
| 8852377400 | real interest rate | the interest rate corrected for the effects of inflation | 12 | |
| 8852377401 | natural rate of unemployment | combination of frictional, structural and surplus unemployment. | 13 | |
| 8852377402 | consumption function | the relationship between consumption spending and disposable income | 14 | |
| 8852377403 | saving function | the relationship between saving and income | 15 | |
| 8852377404 | Autonomous function | minimum level of consumption or spending that must take place even if a consumer has no disposable income | 16 | |
| 8852377405 | Marginal Propensity to Consume | the increase in consumer spending when disposable income rises by $1 | 17 | |
| 8852377406 | Marginal Propensity to Save | the increase in household savings when disposable income rises by $1 | 18 | |
| 8852377407 | Average propensity to consume | The proportion of income that households devote to consumer expenditure | 19 | |
| 8852377408 | Average Propensity to Save | Fraction of disposable income that households save; saving divided disposable income | 20 |