UNIT 5 STUDYGUIDE Flashcards
durable goods
goods that last a very long time, appliances
nondurable goods
goods that last a short period of time, food, horse
Real GDP
Expressed in constant or unchanging dollars
Nominal GDP
Measured in current prices
Difference between nominal GDP and real GDP
Nominal measures output in current prices while real measures output in constant prices
Aggregate supply
the total amount of goods and services available at all possible price levels.
Aggregate demand
the amount of goods and services in the economy that will be purchased at all levels
Market basket
a representative collection of goods and services
Inflation
A general increase in prices
Gross domestic product, GDP
The dollar value of all final goods and services produced within a countries borders in a given year
Full employment, %
The level of employment reached when there is no cyclical employment, 4-6%
Recession
A prolonged economic contraction
Purchasing power
The ability to purchase goods and services, is decreased by rising prices
capital deepening, benefits
the process of increasing capital per worker, it increase per capita gdp
intermediate good
goods used in the production of final goods and services, machinary
