CLEP Macro Economics

O full employment a state of the economy in which

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o Full employment: A state of the economy in which every person in the labor force is able to find a job. o Full employment rate of unemployment: A statistic stated as a percentage that indicates the rate of joblessness at which there is not cyclical unemployment of the labor force; this is the lowest rate of unemployment compatible with price stability. G o General partners: Owners who have unlimited liability and are active in managing the company. o Globalization: The increasing degree of economic integration among nations. o Government expenditures: Government payments for goods and services invested in equipment and structures. o Government purchases: Spending by the federal government on goods and services, distinct from income transfers. o Government receipts: The collection of money that primarily results from taxes and is enforced by the Internal Revenue Service (IRS). o Gross domestic product (GDP): The total or aggregate market value of all final output (for example, goods and services) produced within an economy in a particular year. o Gross national product (GDP) Gap: The difference between actual and potential output in an economy; this can be positive or negative. o Gross national product (GNP): The total or aggregate market value of all final output of citizens and businesses of a nation in a particular year. o Gross private domestic investment: Business expenditures for newly produced capital goods, such as equipment, structures, inventory, and household spending on new owner-occupied housing. o Growth rate: A measure of how the real GDP has increased or decreased over time. It's the change in real output between two time periods divided by total output in the comparison (base) period. H o Households: Economic units, such as an individual, family, or group of any size living together, that provide labor resources and personal expenditures on goods and services; these are major consuming units in the economy that include everyone in society. o Hyperinflation: A very sudden rise in the price level representing an extremely high rate of inflation. I o Income transfers: Payments from the government to individuals that are not associated with the exchange of goods or services and do not count in aggregate demand until the recipients spend the money. o Induced expenditures: Consumer spending which changes as income changes, either increasing or decreasing. o Inflation: A continual rise in the price level of the economy. o Inflation rate: A percentage representing how much or how little the level of prices of consumer goods and services is increasing per year. o Inflationary GDP gap: The difference between equilibrium income and potential income when equilibrium income exceeds potential income; when aggregate demand is higher than the productive potential of an economy.
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o Interest rate: A term in economics, represented as a percentage, which refers to the cost of using a financial asset, as in borrowing funds. o
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o Full employment A state of the economy in which every...

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