National Economy
The structure of economic activity in a community, region, country, or world.
Economy
A period of time in which the economy is growing.
Expansion
A flow variable measuring the amount by which federal government outlays exceed federal government revenues in a year
Federal budget deficit.
A composite measure of all final goods and services.
Aggregate output.
The incorrect theory that a nations economic objective should be to accumulate precious metals in the public treasury.
Mercantilism
The market value of all goods and services produced by a nation in a year
Gross national product
A period of time in which an economy declines.
Contraction
Macroeconomic policy that focuses on shifting the aggregate demand curve as a way of promoting full employment and price stability
Demand-side economics
Relationship between the economy's price level and aggregate output demanded
Aggregate Demand
Variable that predict or lead to a recession or recovery.
Leading economic indicators
The market value of all goods and services produced in the world in a given year.
Gross world Product
A severe and prolonged reduction in activity of the economy. Ex. event in the 30's
Depression
A stagnation of a nations output accompanied by inflation in the price level
Stagflation
A composite measure reflecting the prices of all goods and services in the economy
Price level
Variables that follow, or trail changes in overall economic activity.
Lagging economic indicators
The measure of something in a given period of time
Flow variable
A period of economic decline that lasts more than a few months.
Recession
supply-side economics
The economy's aggregate output measured in dollars of purchasing power.
Real GDP
A curve representing the relationship between the economy's price level and real GDP supplied
Aggregate supply curve
The measure of something at a specific point in time.
Stock Variable
An increase in the economy's average price level
Inflation
A stock variable that measures the net accumulation of annual federal deficits
Federal debt
A curve representing the relationship between the economy's price level and real GDP demanded per year.
Aggregate demand curve
Real GDP divided by the population
Real GDP per capita