Chapter 12 and 13 Economics

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Chapter 12 and 13 Economics
2012-03-22 23:46:05
Econ Vocab

By: Abby Gryzik Vocabulary and definitions of chapters 12 and 13 from the class Contemporary Economics.
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  1. What are durable goods?
    Goods that last for a relatively long time.
  2. What are nondurable goods?
    Goods that last a short period of time.
  3. What is nominal GDP?
    GDP measured in current prices.
  4. What is real GDP?
    GDP measured in unchanged, constant prices.
  5. What is depreciation?
    The loss of the value of capital equipment that resorts from normal wear and tear.
  6. What is the savings rate?
    The proportion of disposable income that is saved.
  7. Define globalization.
    The shift from local to global markets as countries seek foreigners trade and investment.
  8. What does it mean to be underemployed?
    Working at a job you are unqualified for.
  9. What is purchasing power?
    The ability to purchase goods and services.
  10. What is fixed income?
    Income that does not increase even when prices go up.