# GDP

## Vocabulary

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
$\text{GDP per}\;\text{Capita}=\frac{\text{GDP}}{\text{Population}}$

### 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