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TEST 2 STUDY GUIDE-2 - Real GDP(Gross Domestic Prodmeasure...

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Real GDP (Gross Domestic Prod- measure value final G&S borders ,country 1 year Nominal GDP- totals $$ all G &S produced borders given country using their current prices duri year produced . Unemployment- state a person in cannot get a job despite being willing to work and actively seeking work. Inflation- An increase in the overall level of prices, not all prices, non-econmic costs Modern economic growth- (in which output per person rises) annual increase output per person not large, Financial investment- Captures w/ ordinary people mean say investment. The purchase assets like stock, bonds, real estate in the hope of reaping a financial gain. Economic investment- creation and expansion busi enterprises. Only include money spent purchasing newly created capital goods machinery, tools, factories, and warehouses. The Business cycle- Macro-economic- Studies behavior economy as whole. It is primarily two topics: long-run economic growth and the short-run fluctuations in out-put and employment. Recession- Sometimes growth proceeds more rapidly and sometimes it proceeds more slowly. It may even turn negative for a while so that output and living standards actually decline.
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Gross Domestic Product (GDP) - aggregate output dollar value all final g & s produced borders country,time (Monetary measure of market value of all vital goods and services within a country within a year. Monetary Measure- What the GDP does. Intermediate Goods - Goods and services purchased 4 resale, for further processing or manufacturing. Final Goods - Are consumption goods, capital goods, and services that are purchased by their final users, rather than for resale or for further processing or manufacturing. Multiple Counting -Wrongly including value intermediate goods inGDP; counting g & s more than once. This will cause a distortion in the value GDP.
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