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Chapter 26
Cowen and Tabarrok
Term | Definition |
---|---|
Gross Domestic Product | the market value of all finished goods and services produced within a country in a year |
GDP per capita | GDP divided by population |
Gross National Product | the market value of all finished goods and services produced by a country’s residents wherever located in a year |
Nominal Variables | variables that have not been adjusted for changes in prices |
Real Variables | variables that have been adjusted for changes in prices using the same set of prices in all time periods |
Recession | a significant, widespread decline in real GDP and employment |
Business cycles | the short run movements in real GDP around its long-term trend |
Consumption | private spending on finished goods and services |
Investment | private spending on tools, plant, and equipment used to produce future output |
Government Purchases | spending by federal, state and local government on finished goods and services. Transfers are not included. |
Net Exports | the value of exports minus the value of imports |