Chapter 11 Flashcards
1
Q
Nominal GDP
A
Measured in current prices
2
Q
Real GDP
A
Expressed in constant or unchanging price
3
Q
Limitations of GDP
A
Nonmarket activities, underground economy’s, negative externalities, Quality-of-life
4
Q
Leading indicators
A
Key economic variables that economists used to predict a new phase of a business cycle
5
Q
Capital deepening
A
Process of increasing the amount of capital per worker
6
Q
Saving
A
Income not used for consumption
7
Q
Savings rate
A
The portion of disposable income that is saved
8
Q
Technological process
A
An increase in efficiency gains by producing more output without using more inputs
