Gross Domestic Product and Economic Measures

These flashcards cover key terms and concepts related to Gross Domestic Product and economic measurements discussed in the lecture.

Gross Domestic Product (GDP)

The market value of all final goods and services produced within a country in a given period of time.

Recession

A significant decline in economic activity that lasts for more than a few months.

Nominal GDP

Measures current output sold at current prices.

Real GDP

Measures current output sold at constant prices, adjusted for inflation.

GDP Deflator

A price index that allows the measurement of price changes across periods.

Trade Deficit

A situation where a country's imports exceed its exports.

Consumption

The total value of all goods and services consumed by households.

Investment

The purchase of goods that will be used for future production.

Foreign Sector

The part of the economy that includes trade and financial dealings with other countries.

Net Exports (X - M)

Exports minus imports; indicates a trade surplus or deficit.

Income Inequality

The unequal distribution of income within a population.