CH 2 Flashcards
1
Q
Stock Variable
A
a variable measured as a quantity at a point in time
2
Q
Flow Variable
A
A variable measured as a quantity per unit of time
3
Q
Nominal GDP
A
Measured in current dollars; not adjusted for inflation
4
Q
Why can nominal GDP increase?
A
price rise or quantities rise
5
Q
GDP deflator
A
ratio of nominal GDP to real GDP; a measure of the overall level of prices that shows the cost of currently produced basket of goods relative to the cost of the basket in a base year
6
Q
Factors of production
A
inputs used to produce other goods and services (like capital and labor)
7
Q
Capital
A
the tools used by workers in the production process
8
Q
Labor
A
the time spent by workers in the production process
