Ch. 6 Vocab

Gross Domestic Product (GDP)

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

per capita GDP

Gross Domestic Product per person

inflation

the growth in the overall level of prices in an economy

real GDP

GDP adjusted for changes in prices

economic growth

measured as the percentage change in real per capita GDP

recession

a short-term economic downturn

Great Recession

the U.S. recession lasting from December 2007 to June 2009

business cycle

a short-run fluctuation in economic activity

economic expansion

a phase of the business cycle during which economic activity is increasing

economic contraction

a phase of the business cycle during which economic activity is decreasing

services

outputs that provide benefits without producing a tangible product

intermediate goods

goods that firms repackage or bundle with other goods for sale at a later stage

final goods

goods sold to final users

consumption

the purchase of final goods and services by households, excluding new housing

investment

private spending on tools, plant, and equipment used to produce future output

government spending

spending by all levels of government on final goods and services

net exports

total exports minus total imports

Nominal GDP

GDP measured in current prices and not adjusted for inflation

price level

index of the average prices of goods and services throughout the economy

GDP deflator

a measure of the price level used to calculate real GDP