CHAPTER 6 : INTRODUCTION TO MACROECONOMICS AND GROSS DOMESTIC PRODUCT

the study of economy of an entire nation or society. Study of broader economy

the study of individual people, firms, and industries. You study what people buy, what jobs they take, and how they distribute their income between purchases and savings

the market value of all final goods and services produced within a country during a specific period

-Measuring Living Standards
-Measuring Economic Growth
-Measuring Business Cycles

GDP per person

the growth in overall level of prices in an economy

GDP adjusted for changes in prices

measured as the percentage change in real per capita GDP

a short-term economic downturn

the U.S recession lasting from December 2007 to June 2009

a short-run fluctuation in economic activity

a phase of the business cycle during which the economy is growing faster than usual

a phase of the business cycle during which the economy is growing more slowly than usual

an output that provides benefits without the production of a tangible product

a good that firms repackage or bundle with other goods for sale at a later stage

a good sold to final users

the output produced by workers and resources owned by residents of the nation

the purchase of final goods and services by households, excluding new housing

goods that are consumed over a short period

goods that are consumed over a long period

private spending on tools, plant, and equipment used to produce future output

spending by all levels of government on final goods and services

exports minus imports of final goods and services

GDP measured in current prices, and not adjusted for inflation

an index of the average prices of goods and services throughout the economy

a measure of the price level that includes prices of the final goods and services included in GDP

-Non-Market Goods
-Underground Economy
-Quality of Environment
-Leisure Time