question
Income per capita
answer
average income per person
question
Recession
answer
An economic downturn lasting two quarters
question
Official Unemployed conditions
answer
He or she does not have a job, has actively looked for work in the 4 prior weeks, and is currently available for work
question
unemployment rate
answer
the fraction of the labor force that is unemployed
question
National income accounts
answer
an accounting framework used in measuring current economic activity
question
National income and product accounts
answer
Formal name for National income accounts in the US
question
Gross Domestic Product (GDP)
answer
Is the market value of final goods and services produced in a country in a given period of time
question
Aggregate accounting identity
answer
Production = Expenditure = Income
question
factors of production
answer
Inputs to the production process and capital and labor
question
Key forms of factors of production
answer
Capital and labor
question
Value added
answer
the firm's sales revenue minus its purchases of intermediate products from other firms
question
consumption
answer
The market value of consumption goods and consumption services that are bought by domestic households
question
Investment
answer
Market value of new physical capital that is bought by domestic households and firms
question
Government expenditure
answer
the market value of government purchases of goods and services
question
Exports
answer
the market value of all domestically produced goods and services that are purchased by households, firms, and governments in foreign countries
question
imports
answer
the market value of all foreign-produced goods and services that are sold to domestic households, domestic firms, and the domestic government
question
GDP equation
answer
Consumption + government spending + investment + exports - imports
question
Labor income
answer
Income payed for by peoples work
question
capital income
answer
Income realized by the owners of physical capital (a house) or financial capital(stocks and bonds)
question
What isn't measured by GDP
answer
Depreciation, home production (unpaid work), underground economy, externalities, increase in income inequality, leisure
question
Gross National Product
answer
the market value of production generated by factors or production (both capital and labor) possessed or owned by the residents of a particular nation
question
What is often used as a measure odds the well being of a society
answer
GDP
question
Nominal GDP
answer
The total market value of production using current prices to determine the value per unit produce
question
Real GDP
answer
Same as nominal GDP but uses prices from a base year
question
Real GDP growth
answer
The growth rate of real GDP
question
GDP deflator
answer
Nominal GDP/Real GDP x 100
(How much prices of goods and services produced in a country have risen since the base year)
(How much prices of goods and services produced in a country have risen since the base year)
question
Consumer Price Index (CPI)
answer
Is 100 times the cost of buying a basket of consumer goods in a target year divided by the the cost of the same basket in a base year
question
inflation rate
answer
The rate of increase in prices
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