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  1. Macroeconomics
    study of the nation’s economy as a whole: focuses on the issues of inflation, unemployment, and economic growth.
  2. Inflation
    sustained increases in the average prices of all goods and services.
  3. Circular flow of production and income
    circular flow shows how the production of good and services generates income for households and how households purchase goods and services produced by firms
  4. Gross domestic product (GDP)
    the total market value of final goods and services produced within an economy in a given year.
  5. Intermediate Goods
    Goods used in the production process that are not final goods and services
  6. Real GDP
    A measure of GDP hat controls for changes in prices
  7. Nominal GDP
    The value of GDP in current dollars
  8. Economic Growth
    Sustained increases in the real GDP of an economy over a long period of time
  9. Consumption Expenditures
    Purchases of newly produced goods and services by households
  10. Private Investment Expenditures
    Purchases of newly produced goods and services by firms
  11. Gross Investment
    Total new investment expenditures
  12. Depreciation
    Reduction in the value of capital goods over a one-year period due to physical wear and tear and also to obsolescence; also called capital consumption allowance
  13. Net Investment
    Gross investment minus depreciation
  14. Government Purchases
    Purchases of newly produced goods and services by local, state, and federal governments
  15. Transfer Payments
    Payments from governments to individuals that do not correspond to the production of goods and services
  16. Import
    A good or service that is produced in a foreign county and purchased by resident of the home country
  17. Export
    A good or service that is produced in the home country and purchased by the foreign country
  18. Net Exports
    Exports minus imports
  19. Trade Deficit
    The excess of imports over exports
  20. Trade Surplus
    The excess of exports over imports
  21. National Income
    The total income earned by a nation's residents both domestically and abroad in the production of goods and services.
  22. Gross National Product
    GDP plus net income earned abroad
  23. Personal Income
    Income, including transfer payments, received by households
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2013-04-09 06:13:15

Chapters 5-8
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