National income accounting - The process of tracking production, income, and consumption in a nation's economy.
Gross domestic product - Total dollar value of all final goods and servies produced within a country during one calender year.
output-expenditure model - A way to calculate GDP C + I + G + (X - M) = GDP.
personal consumption expenditure - consumer purchases.
gross investment - total value of all capital goods produced in a given nation during one year as well as changes in the dollar value of business inventories.
nominal GDP - Current GDP.
real GDP - GDP adjusted for price changes.
Price index - set of statistics that allow economists to compare prices over time.
underground economy - illegal activities and unreported legal activities.
gross national product - measures the total dollar value of all final output produced with factors of production owned by residents of a country during one year.
business cycle - fluctuations in a market system's economic activity.
expansion - a period of economic growth.
peak - a high point of expansion, where the economy is at its strongest and most prosperous point.
contraction - a recession.
recession - decline in real GDP for two or more consecutive quarters.
depression - prolonged and severe recessions.
trough - occurs when demand, production, and unemployment reach their lowest levels.
leading indicators - anticipate the direction in which the economy is headed.
coincident indicators - change as the economy moves from one phase of the business cycle to another and tell economists that an upturn or downturn in the economy has occurred.
lagging indicators - change months after an upturn or downturn in the economy has begun.
real GDP per capita - increase in the real dollar value of all final goods or services that are produced per person for a specified period of time.
labor productivity - measure of how much each worker produces in a given period of time.
productivity growth - an increase in the output of each worker per hour of work.
capital to labor ratio - the amount of capital stock available per worker.
capital deepening - an increase in the amount of capital goods available per worker - results.