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Gross Domestic Product
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The dollar value of all final goods, services, and structures produced within a country's national borders during a one- year period.
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durable goods
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Goods that last for a relatively long time, such as refrigerators, cars, and DVD players.
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non-durable goods
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Goods that last a short period of time, such as food, light bulbs, and sneakers
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depreciation
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The loss of the value of capital equipment that results from normal wear and tear.
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business cycle
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A period of macroeconomic (refers to the national economy) expansion followed by one of microeconomic (refers to a particular market) contraction.
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expansion
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A period of economic growth as measured by a rise in real GDP.
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economic growth
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A steady, long-term increase in real GDP.
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peak
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The height of an economic expansion when real GDP stops rising.
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contraction
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The period of economic decline marked by falling real GDP.
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trough
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The lowest point of an economic contraction, when real GDP stops falling.
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recession
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A prolonged economic contraction.
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depression
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A recession that is especially long and severe.
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stagflation
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A decline n real DGP combined with a rise in the price level.
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real GDP per capita
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Real GDP divided by the total population of a country.
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saving
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Income not used for consumption.
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savings rate
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The portion of disposable income that is saved.
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globalization
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The shift from local to global markets as countries seek foreign trade and investment.
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unemployment rate
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The percentage of the nation's labor force that is unemployed.
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underemployed
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Working at a job for which one is over-qualified or working part-time when full-time work is desired.
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discouraged worker
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Someone who wants a job but has given up on looking.
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inflation
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A general increase in prices across an economy.
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Consumer Price Index
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A price index (shows how average price changes over time) determined by measuring the price of a standard group of goods meant o represent the "market basket" of a typical urban consumer.
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inflation rate
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The percentage rate of change in price level over time.
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hyperinflation
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Inflation that is out of control.
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deflation
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A sustained drop in the price level.
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poverty threshold
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The income level below which income is insufficient to support a family or household.
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poverty rate
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The percentage of people who live in households with income below the official poverty threshold.
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income distribution
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The way in which a nation's total income is distributed among its population.
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macroeconomics
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A branch of economics that looks at the operation of a nation's economy as a whole.
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microeconomics
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A branch of economics that studies decision making by individuals, families, or businesses.
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