Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
business cycles double- yield curve circular flow diagram gross domestic product (GDP) personal consumption expenditures gross private domestic investment (GPDI) government spending net exports national income real GDP GDP per capita informal economy | Includes all transactions that are conducted but are not licensed and/or generate income that is not reported to the government (for tax collection). Shows the relationship between the interest rate earned on a bond (measured on the vertical axis) and the length of time until the bond’s maturity date (shown on the horizontal axis). All income, including wages, salaries and benefits, profits (for sole proprietors, partnerships, and corporations), rental income, and interest. A measure of the economy’s total output; it is the most widely reported value in the national income and product accounts (NIPA) and is equal to the total market value of all final goods and services produced by resources in a given year. A country’s GDP divided by its population. GDP per capita provides a useful measure of a country’s relative standard of living. A recession that begins after only a short period of economic recovery from the previous recession. Includes the wages and salaries of government employees (federal, state, and local); the purchase of products and services from private businesses and the rest of the world; and government purchases of new structures and equipment. Investments in such things as structures (residential and nonresidential), equipment, and software, and changes in private inventories. Exports minus imports for the current period. Exports include all goods and services we sell abroad, while imports include all goods and services we buy from other countries. Alternating increases and decreases in economic activity that are typically punctuated by periods of recession and recovery. Illustrates how households and firms interact through product and resource markets and shows that economic aggregates can be determined by examining either spending flows or income flows to households. The total value of final goods and services produced in a country in a year measured using prices in a base year. Goods and services purchased by residents of the United States, whether individuals or businesses; they include durable goods, nondurable goods, and services. |