Post 21

Mr. Campbell asked us to make a terms lists of the following terms.

National Income Accounting- Process used for tracking production, income, and consumption in a nations economy

Gross Domestic Product- Total value of all final goods and services produced within a country in a given year

Output Expenditure Model- A method of computing the GDP by adding the total value of consumer and government spending

Personal Consumption Expenditure- Total spending by consumers for durable goods, nondurable goods, and services during a specified period of time

Gross Investment- Total value of private spending in the economy for capital assets

Nominal GDP- The value of a nations GDP at the current prices of the period being measured

Real GDP- The value of a nations GDP after it has been adjusted for inflation

Price Index- A set of statistics that allows economists to compare prices over time

Underground Economy- Illegal economic activities or unreported legal activities that are not accounted for in national income measures

Gross National Product- Total value of all final goods and services produced with factors of production owned by citizens of a different country

Business Cycle- A recurring pattern in economic activity that is characterized by alternating periods of expansion and contraction

Expansion- A period of the business cycle during which economic activity is increasing toward a peak

Peak-The point of the business cycle during which employment production and wages are at their highest

Contraction- A period in the business cycle during which business activity slows down and overall economic indicators decline

Recession- Substantial and general decline in over all business activity over a signifigant period of time

Depression- A prolonged and severe recession

Trough-The lowest point of the business cycle

Leading Indicators- Set of economic factors that anticipate the expansions and contractions of the business cycle from one month up to two years before similar changes in overall economic activity occur

Coincident Indicators- Set of economic factors that move up or down with the economy

Lagging Indicators- Set of economic factors that help economicts predict the duration of economic up or downturns

Real GDP Per Capita-The dollar value adjusted for inflation of all final goods and services produced  per person  in an economy in a given year

Labor Productivity- Measure of how much each worker produces in a given period of time

Productivity Growth- Increase in output per worker per hour worked

Capitol-to-labor ratio- Amount of capital resources available per worker

Capital Deepening- The increasing of capital resources at a faster rate than the increasing of the labor force