Post 21: Vocabulary

Page 235 Q1 Vocab:
1. National Income Accounting: tracking process providing information about a nation's economic activities
2. Gross Domestic Product: total dollar value of all final goods and services produced within a country during one calender year
3. Output-Expenditure Model: C + I + G + (X-M) = GDP
4. Personal Consumption Expenditure: consumer purchases
5. Gross Investment: total value of all capital goods produced in a given nation during one year as well as changes in the dollar value of business inventories
6. Nominal GDP: GDP expressed in the current prices of the period being measured
7. Real GDP: GDP adjusted for price changes
8: Price Index: set of statistics that allows economists to compare prices over time
9. Underground Economy: illegal activities and unreported legal activities
10. Gross National Product: NIPA used to measure U.S. economy by the Commerce Department until 1991

Page 240 Q1 Vocab:
1. Business Cycle:fluctuations in a markets system's economic activity
2. Expansion: period of economic growth
3. Peak:high point at which the economy is at it's strongest and most prosperous
4. Contraction:recession
5. Recession:decline in the real GDP for two or more consecutive quarter (six months of more)
6. Depression: prolonged and severe recessions
7. Trough:final stage of the business cycle, occurs when demand, production, and employment reach their lowest levels
8. Leading Indicators:anticipate the direction in which the economy is headed
9. Coincident Indicators:changes as the economy moves from one phase of the business cycle to another and tell the economists that an upturn or downturn in the economy has arrived
10. Lagging Indicators: change months after an upturn or downturn in the economy

Page 246 Q1 Vocab:
1. Real GDP per Capita: increase in the real dollar value of all final goods and services that are produced per person for a specific period of time
2. Labor Productivity: measure of how much each worker produces in a given period of time
3. Productivity Growth:increase in the output of each worker per hour of work
4. Capital-to-Labor Ratio:amount of capital stock available per worker
5. Capital Deepening: increase in the amount of capital goods available per worker