AP macro unit 2 vocab

studied byStudied by 2 people
0.0(0)
Get a hint
Hint

 Product Market

1 / 36

37 Terms

1

 Product Market

markets where goods and services are bought and sold

New cards
2

 Consumer Spending

household spending on goods and services

New cards
3

 Factor Market

markets where resources, especially capital and labor, are bought and sold

New cards
4

 Government Spending

total expenditures on goods and services by federal, state, and local goverments

New cards
5

 Tax Revenue

the total amount of funds the government receives from taxes

New cards
6

 Disposable Income

equal to income – taxes, this is the total amount of household income available to spend on consumption.

New cards
7

 Government Transfers

payments that the government makes to individuals without expecting a good or service in return

New cards
8

 Private Savings

equal to disposable income – consumer spending, this is a household’s disposable income that is not spent on consumption

New cards
9

 Financial Markets

channel private savings into investment spending and government borrowing

New cards
10

 Government Borrowing

the amount of funds borrowed by the government in the financial market

New cards
11

 Investment Spending

spending by firms on new productive physical capital, such as machinery and structures, and changes in inventories

New cards
12

 Inventories

stocks of goods and raw materials held to facilitate business operations

New cards
13

 Exports

goods and services sold to other countries

New cards
14

 Imports

goods and services purchased from other countries

New cards
15

 Gross Domestic Product (GDP)

the total value of all final goods and services produced in the economy during a given year

New cards
16

 Intermediate Goods

goods and services bought from one firm by another firm to be used as inputs into the production of goods and services

New cards
17

 Final Goods

goods and services sold to the final, or end, user

New cards
18

 Employed

people currently holding a job in the economy, either part-time or full-time

New cards
19

 Unemployed

people who are actively looking for work but aren’t currently employed

New cards
20

 Labor Force

equal to the sum of the employed and the unemployed

New cards
21

 Discouraged Workers

nonworking people who are capable of working but have given up looking for a job due to the state of the job market

New cards
22

 Natural Rate of Unemployment

the unemployment rate that arises from the effects of frictional plus structural unemployment

New cards
23

 Inflation

a rising overall price level

New cards
24

 Deflation

a falling overall price level

New cards
25

 Disinflation

the process of bringing the inflation rate down

New cards
26

 Real Wage

the wage rate divided by the price level to adjust for the effects of inflation or deflation

New cards
27

 Real Income

income divided by the price level to adjust for the effects of inflation or deflation

New cards
28

 Price Level

the measure of overall prices in the economy

New cards
29

 Consumer Price Index

measures the cost of the market basket of the typical urban American family

New cards
30

 Nominal Interest Rate

the interest rate actually paid for a loan

New cards
31

 Real Interest Rate

the nominal interest rate minus the rate of inflation

New cards
32

 GDP Deflator

measuring and adjusting the nominal GDP for changes in the price level over time

New cards
33

 GDP per capita

GDP divided by the total population; it is equivalent to the average GDP per person

New cards
34

 Economic Growth

an increase in the maximum amount of goods and services that an economy can produce

New cards
35

 Full-Employment Output

the level of real GDP the economy can produce when all resources are fully employed

New cards
36

 Potential Output

what an economy can produce when operating at maximum sustainable employment (that is, the natural rate of unemployment)

New cards
37

 Output Gap

the difference between actual output and potential output

New cards

Explore top notes

note Note
studied byStudied by 64 people
... ago
5.0(1)
note Note
studied byStudied by 5 people
... ago
5.0(1)
note Note
studied byStudied by 1 person
... ago
5.0(1)
note Note
studied byStudied by 10 people
... ago
5.0(1)
note Note
studied byStudied by 9 people
... ago
5.0(1)
note Note
studied byStudied by 13 people
... ago
5.0(1)
note Note
studied byStudied by 66 people
... ago
5.0(2)
note Note
studied byStudied by 23 people
... ago
5.0(1)

Explore top flashcards

flashcards Flashcard (36)
studied byStudied by 17 people
... ago
5.0(1)
flashcards Flashcard (56)
studied byStudied by 10 people
... ago
5.0(1)
flashcards Flashcard (20)
studied byStudied by 30 people
... ago
5.0(1)
flashcards Flashcard (196)
studied byStudied by 3 people
... ago
5.0(1)
flashcards Flashcard (164)
studied byStudied by 130 people
... ago
4.0(4)
flashcards Flashcard (20)
studied byStudied by 7 people
... ago
5.0(1)
flashcards Flashcard (62)
studied byStudied by 7 people
... ago
5.0(1)
flashcards Flashcard (48)
studied byStudied by 22 people
... ago
5.0(1)
robot