Term
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Definition
| a rate; variable measured over time; the time dimension is critical to giving meaning to the value |
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Term
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Definition
| an absolute amount; a varible measured at a given point in time |
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Definition
| a nation's wealth is determined by its stock of precious metals |
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Term
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Definition
| one party gains at the expense of the other |
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Term
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Definition
| output from resources physically located within the boundaries of the particular country |
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Term
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Definition
| output from resources owned by citizens of the particular country (regardless of where the resources are located) |
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Term
| income or earnings approach |
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Definition
| add up all of the earnings received by all the households in the economy |
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Term
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Definition
| add up all types of spending on final goods and services |
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Term
| personal consumption expenditures |
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Definition
| house holds -> consumption (C) |
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Term
| gross private domestic investment |
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Definition
| businesses -> investment (I) |
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Term
| government consumption expenditures and investment |
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Definition
| Government -> government purchases (G) |
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Term
| net exports of goods and services |
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Definition
| foreigners -> net exports (X-M) |
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Term
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Definition
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Term
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Definition
| values measured in terms of current prices; do not hold the prices of goods and services constant |
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Term
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Definition
| values measured in terms of constant prices; eliminate the effects of changes in the price level |
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Term
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Definition
| represents all goods and services produced in the economy |
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Term
| Consumer Price Index (CPI) |
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Definition
| represents what the typical family of four will purchase |
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Term
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Definition
| over time consumers will shift out of the goods whose prices have risen relatively rapidly, thus changing the composition of the bundle; the "cost of living" will be overstated |
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Term
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Definition
| failure to adjust prices to reflect increases in quality will again overstate the "cost of living" |
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Term
| problem with real per capita GDP as a measure of social welfare |
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Definition
| non-market activities, unreported market activities, externalities, differences in leisure, differences in quality not reflect by price, gdp measures production not the increase in goods and services available for consumption |
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Term
| components of consumption |
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Definition
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Term
| disposition of income (without government) |
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Definition
| income = consumption + saving |
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Term
| disposition of income (with government) |
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Definition
| income = consumption + saving + taxes |
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Term
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Definition
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Term
| keynesian concumption function (without government) |
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Definition
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Term
| keynesian concumption function (with government) |
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Definition
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Term
| keynesian concumption function |
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Definition
| disposable income, consumption, aggregate income |
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Term
| permanent income hypoethesis theorist |
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Definition
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Term
| permanent income hypothesis |
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Definition
| consumption is a function of long run or permanet income, not current income |
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Term
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Definition
| production of capital goods + changes in inventory |
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Term
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Definition
| changes in stock of capital goods + changes in inventory |
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Term
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Definition
| exports are good and imports are bad |
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Term
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Definition
| unemployed divided by civilian labor force |
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Term
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Definition
| do not havea job, be available for work. looking for working within past 4 weeks |
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Term
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Definition
| the unemployment that results because workers typically spend some time looking for work between jobs; workers are unaware of positions that are/will be available |
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Term
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Definition
| results because jobs and workers are not perfectly matched; different people have different skills and different jobs have different requirements |
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Term
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Definition
| reuslts from a downturn in economic activity (recession or depression) |
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Term
| problem with measuring unemployment |
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Definition
| some who work are not counted as being employed |
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Term
| problem with measuring unemployment |
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Definition
| discouraged workers not considered unemployed |
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Term
| problem with measuring unemployment |
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Definition
| no distinction made between full and part time employment |
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Term
| problem with measuring unemployment |
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Definition
| some workers are classified as unemployed en though they are not seriously looking for work |
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Term
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Definition
| divid 72 by the growht rate and thiswill tell you how many years it will take to double |
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Term
| growth from an inefficient level of production |
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Definition
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Term
| growth from an efficient level of production |
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Definition
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Term
| causes of economic growth |
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Definition
| increase in resources (natural resources, labor, capital) |
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Term
| causes of economic growth |
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Definition
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Term
| causes of economic growth |
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Definition
| reduction in trade barriers (more free trade) |
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Term
| causes of economic growth |
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Definition
| structure of property rights |
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Term
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Definition
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Term
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Definition
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Term
| per capita economic growth |
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Definition
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