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chain-weighted real GDP
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a method for constructing real GDP in which the realtive-price weights coninually adjusted for the changing composition of production
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Consumer price index
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a weighted average of prices of consumer goods relative to a base year
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personal income
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income recieved directly by persons;national income adjusted for undistributed corprate profits, ss contributions, transfer payments, and some other items
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interest rate
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the ratio of the interest payment to the amnt borrowed; the return to lendingor the cost of borrowing
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budget constraint
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the equation realting the sources of funds in a period, such as income from the commodity market and initial assets, to the uses of funds in that period, such as consumption and end-of-period assets
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GNP
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the total market value of the goods and services produced by the residents of a country over a specified period of time; GNP equals gross domestic product plus the net factor income from abroad
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Acyclical
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having no regular relation with the business cycle, that is, with detrended GDP
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implicit GDP price deflator
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the price index that relates the gross domestic product, measured in nomial terms, to real GDP
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real gross domestic product
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the GDp divided by a price index to adjust for changes in the average level of market prices; GDP in constant dollars
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NDP
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GDP less depreciation
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procyclical
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moving in the same direction as the business cycle, that is, with detrended real GDp
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inflation rate
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the percentage change in a price index btwn two periods of time
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net exports
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exports-imports
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demand for money
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the amnt of money that someone desires to hold, expressed as a function of the volume of spending, the interest rate, transaction costs, and other variables
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gross private domestic investment
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total private expenditure on investment goods, including bussiness spending on plant and equipment, the net change in business inventories, and residential construction. this total contains no adjustment for the depreciation of the existing capital goods
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disposable personal income
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personal income less taxes
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wage rate
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the dollar amnt paid to a worker in excahnge for an hour of labor services
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general price level
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the dollar price per unit of an agregate of commodites
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national income accounts
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the summary statement of gross national product and its components during a year
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net investment
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change in capital stock; gross investment minus the amount of depresication
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depreciation
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the wearing out of capital goods over time; often expressed as a fraction of the stock of capital
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money
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the usual means of payment or medium of exchange in an economy. money also serves as a store of value. money may take the form of paper currency, commodities, or deposits at financial institutions.
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balance of international payments
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the summary statement of a country's international trade in commodities, bonds, and international currency
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keynesian model
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the thoery developed that sought to explain aggregate business fluctautions. the failure of prices to adjust to clear markets is a central element of the model
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Producer price index
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a weighted average of prices of raw materials and semifinished goods, relative to base-year prices
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boom
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a period in which aggregate economic acticity or real gross national product is high and rising
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govt consumption expenditure and gross investment
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expendistures by govt on consumption goods and capital goods. the consumption part includes an estimate of the imputed rental income on the stock of public capital
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national income
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the income earned from aggregate production; gross national product adjusted for depreciation and sales and excise taxes
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GDP
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the market value of an economys domestically produced goods and services over a specific period of time
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