Recession Expansion Business cycle Business-cycle peak Business-cycle trough Long-run economic growth Inflation Deflation Price stability Open economy Trade deficit Trade surplus National income and product accounts (national accounts) Circular-flow diagram Household Firm Product market Factor market Consumer spending Stock Bond Government transfers Disposable income Private savings Financial markets Government borrowing Government purchases of goods and services Inventories Investment spending Final goods and services Intermediate goods and services Gross domestic product (GDP) Aggregate spending Value added Net exports Aggregate output Real GDP Nominal GDP Chained dollars GDP per capita Real GDP per capita | spending on productive physical capital, such as machinery and construction of structures, and on changes to inventories. a person or a group of people who share income. an accounting of consumer spending, sales of producers, business investment spending, and other flows of money between different sectors of the economy. Calculated by the Bureau of Economic Analysis. describes the situation in which the value of the goods and services bought from foreigners is more than the value of the goods and services sold to consumers abroad. payments by the government to individuals for which no good or service is provided in return. markets in which resources, especially capital and labor, are bought and sold. a fall in the overall level of prices. the value of all final goods and services produced in the economy during a given year, calculated using the prices current in the year in which the output is produced. the amount of funds borrowed by the government in financial markets to buy goods and services. household spending on goods and services from domestic and foreign firms. describes a method of calculating real GDP that splits the difference between growth rates calculated using early base years and the growth rates calculated using late base years. the point in time at which the economy shifts from recession to expansion. the sustained rise in the quantity of goods and services the economy produces. stocks of goods and raw materials held to satisfy future sales. (of a producer) the value of a producer’s sales minus the value of input purchases. the total spending on domestically produced final goods and services; the sum of consumer spending (C), investment spending (I), government purchases of goods and services (G), and exports minus imports (X − IM). the point in time at which the economy shifts from expansion to recession. the short-run alternation between economic downturns, known as recessions, and economic upturns, known as expansions. markets where goods and services are bought and sold. the total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year. GDP divided by the size of the population; equivalent to the average GDP per person. a share in the ownership of a company held by a shareholder. a period of economic upturn in which output and employment are rising; most economic numbers are following their normal upward trend; also referred to as a recovery. goods and services, bought from one firm by another firm, that are inputs for production of final goods and services. goods and services sold to the final, or end, user. describes the situation in which the value of goods and services bought from foreigners is less than the value of the goods and services sold to them. a period of economic downturn when output and unemployment are falling; also referred to as a contraction. income plus government transfers minus taxes; the total amount of household income available to spend on consumption and saving. the average GDP per person. the economy’s total production of final goods and services for a given time period, usually a year. Real GDP is the numerical measure of aggregate output typically used by economists. an economy that trades goods and services with other countries. the banking, stock, and bond markets, which channel private savings and foreign lending into investment spending, government borrowing, and foreign borrowing. disposable income minus consumer spending; disposable income that is not spent on consumption but rather goes into financial markets. a period in which the aggregate price level is changing only slowly. the total value of all final goods and services produced in the economy during a given period, usually a year. an organization that produces goods and services for sale. total purchases by federal, state, and local governments on goods and services. a loan in the form of an IOU that pays interest. a rise in the overall level of prices. the difference between the value of exports and the value of imports. A positive value for net exports indicates that a country is a net exporter of goods and services; a negative value indicates that a country is a net importer of goods and services. a diagram that represents the transactions in an economy by two kinds of flows around a circle: flows of physical things such as goods or labor in one direction and flows of money to pay for these physical things in the opposite direction. |
Recession
Expansion
Business cycle
Business-cycle peak
Business-cycle trough
Long-run economic growth
Inflation
Deflation
Price stability
Open economy
Trade deficit
Trade surplus
National income and product accounts (national accounts)
Circular-flow diagram
Household
Firm
Product market
Factor market
Consumer spending
Stock
Bond
Government transfers
Disposable income
Private savings
Financial markets
Government borrowing
Government purchases of goods and services
Inventories
Investment spending
Final goods and services
Intermediate goods and services
Gross domestic product (GDP)
Aggregate spending
Value added
Net exports
Aggregate output
Real GDP
Nominal GDP
Chained dollars
GDP per capita
Real GDP per capita