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

combining many individual markets into one overall market

show the quantity of domestic product that is demanded at each possible value of the price level

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

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

calculated by valuing all outputs at current prices

calculated by valuing outputs of different years at common prices; far better measure of changes in total production

products or services purchased by their ultimate users

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

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