Goods stuff
the dollar value of all final goods and services produced within a country's borders in a given year
gross domestic product
a period of macroeconomic expansion followed by one of macroeconomic contraction
business cycle
a steady, long-term increase in real GDP
economic growth
a set of key economic variables that economist use to predict future trends in a business cycle
leading indicators
a prolonged economic contraction
recession
products used in the production of final goods
intermediate goods
the amount of goods and services in the economy that will be purchased at all possible price levels
aggregate demand
a period of economic growth as measured by a rise in real GDP
Expansion
income not used for consumption
savings
a period of economic decline marked by falling real GDP
contraction
those goods that last for a relatively long time, such as refrigerators, cars, and DVD players
durable goods
the average of all prices in the economy
price level
the annual income earned by a nation's firms and citizens
Gross National Product
the loss of the value of capital equipment that results from normal wear and tear
depreciation
the lowest point of an economic contraction, when real GDP stops falling
trough
those goods that last a short period of time, such as food, light bulbs, and sneakers
non-durable goods
the total amount of goods and services in the economy available at all possible price levels
aggregate supply
GDP expressed in constant, or unchanging, prices
real GDP
the proportion of disposable income that is saved
savings rate
a recession that is especially long and severe
depression
the height of an economic expansion, when real GDP stops rising
peak
a system economists use to collect and organize macroeconomic statistics on production, income, investment, and savings
national income accounting
GDP measured in current prices
nominal GDP
you get this when Jimmy Carter loses his job
recovery
a decline in real GDP combined with a rise in the price level
stagflation
The three digit tax code number when you depreciate the full value of equipment the year it is put into service
179
the process of increasing the amount of capital per worker
capital deepening
real GDP divided by the total population of a country
Real GDP per capita
an increase in efficiency gained by producing more output without using more inputs
technological progress
Who said "You never want a serious crisis to go to waste"
Rahm Emanuel