Gross Domestic Product- Total value of all final goods and services produced within a country in a given year.
Output Expenditure Model- A method of computing the GDP by adding the total value of consumer and government spending.
Personal Consumption Expenditure- Total spending by consumers for durable goods, nondurable goods, and services during a specified period of time.
National Income Accounting- Process used for tracking production, income, and consumption in a nations economy.
Gross Investment- Total value of private spending in the economy for capital assets.
Nominal GDP- The value of a nations GDP at the current prices of the period being measured.
Real GDP- The value of a nations GDP after it has been adjusted for inflation.
Price Index- A set of statistics that allows economists to compare prices over time.
Underground Economy- Illegal economic activities or unreported legal activities that are not accounted for in national income measures.
Gross National Product- Total value of all final goods and services produced with factors of production owned by citizens of a different country.
Business Cycle- A recurring pattern in economic activity that is characterized by alternating periods of expansion and contraction.
Expansion- A period of the business cycle during which economic activity is increasing toward a peak.
Peak-The point of the business cycle during which employment production and wages are at their highest.
Contraction- A period in the business cycle during which business activity slows down and overall economic indicators decline.
Recession- Substantial and general decline in over all business activity over a signifigant period of time.
Depression- A prolonged and severe recession.
Trough-The lowest point of the business cycle.
Leading Indicators- Set of economic factors that anticipate the expansions and contractions of the business cycle from one month up to two years before similar changes in overall economic activity occur.
Coincident Indicators- Set of economic factors that move up or down with the economy.
Lagging Indicators- Set of economic factors that help economicts predict the duration of economic up or downturns.
Real GDP Per Capita-The monetary value adjusted for inflation of all final goods and services produced per person in an economy in a given year.
Labor Productivity- Measure of how much each worker produces in a given period of time.
Productivity Growth- Increase in output per worker per hour worked.
Capitol-to-labor- ratio- Amount of capital resources available per worker.
Capital Deepening- The increasing of capital resources at a faster rate than the increasing of the labor force.