Wednesday, January 19, 2011

Post 21

Book + Internet blogger = ???
Page 235
national income accounting - Process of tracking the sum of employess' and proprietors' income, real and estimated rental income, corporate profits, and net interest.
gross domestic product- total dollar value of all final goods and services produced within a country during one calender year.
output expenditure model - formula expressed by C+I+G+(X-M) = GDP
personal consumption expenditure- are durable and non durable goods and services.
Gross investment- total value of all capital goods produced in a given nation during one year as well as changes in the dollar value of business inventories.
nominal GDP- GDP expressed in the current prices of the period being measured.
real GDP- GDP adjusted for price changes.
price index- a set of statistics that allows economist to compare prices over time.
underground economy- illegal activities and unreported legal activities.
Gross national product- total dollar value of all final output produced with factors of production owned by residents of a country during that one year.

Page 240

Business cycles- fluctuations, or changes, in a market system's economic activity.
expansion- a period in which the economy experiences growth.
peak- a high point in the economy when it is most prosperous.
contraction- a period in business cycles when business slowdown.
recession- decline in real GDP for more than six months or two quarters.
depression- severe recessions
trough- final stage in the cycle when demand, production, and employment reach their lowest levels.
leading indicators- anticipate direction in which the economy is headed.
coincident indicators- change as the economy moves from one phase of the business cycle to another tells of the up or downturn of the economy.
lagging indicators- change months after the up or downtown turn in the economy.

Page 246

Real GDP per capita- an increase in the real dollar value of all final goods and services.
Labor productivity- a measure of how much each worker produces in a given time period.
Productivity growth- an increase in the output of each worker per hour of work.
Capital to labor ratio- the amount of capital stock available per worker.
capital deepening-an increase in the amount of capital goods available per worker.

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