econ ch7-9 Flashcards
gross private domestic investment
the creation of capital goods such as factories and machines, that can yield production and hence consumption in the future. also included in this definition are changes in business inventories and repairs made to machines or buildings.
capital goods/producer durables
durable goods used to produce other goods
constant dollars
dollars expressed in terms of real purchasing powers using a particular year as the base or standard of comparison, in contrast to current dollars
purchasing power parity
adjustment in exchange rate conversion that takes into account differences in the true cost of living across countries
economic growth
increases in per capita real gdp measured by its rate of change per year
new growth theory
a theory of economic growth that examines the factors that determine why technology, research, innovation, and the like are undertaken and how they interact
development economics
the study of factors that contribute to the economic growth of a country