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GDP

Vocabulary

business cycle

an interval of expansion and contraction in the economy

constant price

price set to a specific "constant" to adjust for inflation when calculating GDP

consumer spending

total individual and household purchases of consumer goods and services

current price

price at the time of calculation when calculating GDP

export

good or service sold in other countries

GDP deflator

a number that represents the current prices of various goods and services versus their past prices of a given year

GDP per capita

a measure of the total output of a country divided by the number of people in the country
GDP perCapita=GDPPopulation\text{GDP per}\;\text{Capita}=\frac{\text{GDP}}{\text{Population}}

government spending

money spent by the government for various government programs

gross domestic product (GDP)

measurement of a country's total economic output

gross national product (GNP)

the market value of all the finished goods and services produced by a country's factors of production regardless of where the factors of production are located

import

good or service produced abroad and bought domestically

inflation

sustained increase in the general price level of commonly bought goods and services

intermediate good

good or service used in the production of other goods and services

investment spending

spending on business capital, residential capital, and inventories

net exports

the total value of a country's exports minus the value of the country's imports

nominal GDP

the total gross domestic product expressed in current year prices

real GDP

the total output of the economy adjusted for inflation

trade deficit

situation in which a nation imports more than it exports

trade surplus

situation in which a nation exports more than it imports