Chapter 3 Flashcards
1
Q
Government Budget Deficit
A
Flow - Quantity measured per unit time.
2
Q
Government Debt
A
Stock - Quantity measured at a given point in time.
3
Q
Nominal GDP
A
Value of all final goods and services produced using current prices.
It can increase either because price increases and/or quantity increases.
4
Q
Real GDP
A
Value-of goods and services measured using the prices of a base year constant set of prices.
Better measure of economic well-being because it is not affected by changes in prices.
5
Q
Inflation Rate
A
Percentage increase in the overall level of prices.
