CHAPTER REVIEW

KEY CONCEPTS

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.

Question

gross domestic product (GDP)
GDP per capita
gross national product (GNP)
nominal variables
real variables
recession
business fluctuations (business cycles)
consumption
investment spending
government purchases
net exports
the short-run movements in real GDP around its long-term trend.
variables such as real GDP, that have been adjusted for changes in prices by using the same set of prices in all time periods.
private spending on tools, plant, and equipment used to produce future output.
the market value of all final goods and services produced within a country in a year.
the value of exports minus the value of imports.
the market value of all final goods and services produced by a country’s permanent residents, wherever located, in a year.
GDP divided by population.
variables, such as nominal GDP, that have not been adjusted for changes in prices.
a significant, widespread decline in real income and employment.
private spending on final goods and services.
spending by all levels of government on final goods and services not including transfers.
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