Macroeconomics: Principles and Policy – Chapter 4: The Realm of Macroeconomics

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combining many individual markets into one overall market
aggregate demand curve
show the quantity of domestic product that is demanded at each possible value of the price level
aggregate supply curve
shows the quantity of domestic product that is supplied at each possible value of the price level
refers to sustained increase in the general price level
period of time during which the total output of the economy declines
gross domestic product (GDP)
sum of the money values of all final goods and services produced in the domestic economy and sold on organized markets during a specified period of time, usually a year
nominal GDP
calculated by valuing all outputs at current prices
real GDP
calculated by valuing outputs of different years at common prices; far better measure of changes in total production
final goods and services
products or services purchased by their ultimate users
intermediate good
good purchased for resale or for use in producing another good
refers to a sustained decrease in the general price level
inflation that occurs while the economy is growing slowly or in a recession
stabilization policy
name given to government programs designed to prevent or shorten recessions and to counteract inflation
study of behavior of an entire economy
study of individual decision-making unites
people willing to work but without jobs
Categories: Macroeconomics