AP Macroeconomics Unit 2 Vocabulary

Sum of all expenditures undertaken in the economy by the factors

Sum of all goods and services produced in an economy

A measure of the overall level of prices in the economy, also called Price Index

The year upon which inflationary calculations are compared to, and provides a measure of how economic trends have changed from this year to the given year

A bond is a fixed-income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental

A method of estimating statistics for different years at constant prices

A measure of the change in prices paid by U.S. Consumers for a market basket representative of aggregate U.S. consumer spending

The total money spent on final goods and services by individuals and households for personal use and enjoyment in an economy

a reduction in the value of an asset with the passage of time

The component of overall unemployment that results directly from cycles of economic upturn and downturn, typically rising during recessions

A discouraged worker is a person who is eligible for employment and can work, but who is currently unemployed and has not attempted to find employment in the last four weeks

A slowing of the pace of price inflation, such as a decline from 10% to 5% inflation

The amount of money that an individual or household has to spend or save after taxes have been deducted

A level of wages paid to workers above the minimum wage to retain a skilled and efficient workforce

The state of having a paid job

System for calculating gross domestic product (GDP) that combines consumption, investment, government spending, and net exports

Goods and services that are produced in one country and sold to buyers in another

All of the resources that businesses use to purchase, rent, or hire what they need in order to produce goods or services

The end product a business produces that is purchased by a consumer

Any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives

Organizations that produce goods and services, also called a Business or Producer

Voluntary employment transitions such as leaving one’s job for better pay, different work place, etc. with the intention of soon taking a new job

Measures the changes in prices for all the goods and services produced in an economy, GDP Deflator = (nominal GDP / real GDP ) x 100

An economic metric that breaks down a country's economic output per person, calculated by dividing a nation’s GDP by its population

A transferring of funds from a lender to the government, in exchange for securities from said government

Expenditures on goods and services by federal, state, and local governments

A redistribution of wealth by means of the government making a payment, without goods or services being exchanged

Tgrosshe total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period

An estimate of the total value of all the final products and services turned out in a given period by the means of production owned by a country's residents

The measure of physical investment used in computing GDP in the measurement of nations' economic activity.

Also known as consumers

Rapid, excessive, and out-of-control general price increases in an economy, typically inflation measuring more than 50% a month

A good or service bought in one country that was produced in another

A method of calculating GDP based on the principle that all expenditures in an economy should equal the total income generated by the production of all that economy's goods and services

A decrease in the purchasing power of money, an increase in prices of goods and services

A product used to produce a final good or finished product

The raw materials used to produce goods as well as the goods that are available for sale

The sum of employed and unemployed (but willing and able) persons

The percentage of a population that is engaging in the labor force, calculated by diving the total labor force by the total population

People who have not looked for employment in the last four weeks, but are willing and able to work; Discouraged workers are MAW, but not all MAW are discouraged

A subset a products or financial securities designed to mimic the performance of a specific market segment

A cost incurred by firms when they change their prices, and therefore need to change elements of their firm to adapt

A set of economic accounts that provides detailed measures of the value and composition of national output and the incomes generated in the production of that output

The minimum unemployment rate resulting from real or voluntary economic forces, also a ‘potential’ rate

The value of a nation’s total exports minus the value of its total imports

A value of all finished goods and services produced by a country at their current market prices

Exchanges of goods or services that do not involve money or the traditional market system

A principle stating that a 1% increase in unemployment, or difference between nominal and real UE, indicates a 2% decline in GDP

A measure of change of time of prices

A measure of change in the prices received by domestic producers

The marketplace where final goods or services are sold to businesses and the public sector

A value of the goods and services produced in the US, adjusted for inflationary pressures

How much money an individual or entity makes after adjusting for inflation

The amount of money someone makes in one paycheck, adjusted for inflation

A decline in economic activity, lasting more than a ‘few months’

The business cycle stage following a recession that is characterized by a sustained period of improving business

Unemployment resulting from the decreased demand for jobs in certain parts of the year

Costs that people incur to minimize their cash holdings during times of high inflation

Goods or merchandise kept on the premises of a business or warehouse and available for sale or distribution; Capital raised by a business or corporation through the issue and subscription of shares

Longer-lasting form of unemployment caused by fundamental shifts in an economy and exacerbated by extraneous factors such as technology, competition, and government policy

A payment of money, usually from the government, for which there are no goods or services exchanged

A measure of the total number of people in an economy who are unwillingly working in low-skill and low-paying jobs or only part-time because they cannot get full-time jobs that use their skills

The state of not having a job, but being willing and able to undertake one

A percentage of the total labor force that is unemployed but actively seeking work

Calculating an industry or sector's output and subtracting its intermediate consumption (the goods and services used to produce the output) to derive its value added