national income accounting: Set of principles and methods used to measure a country's income and production.
gross domestic product: the amount of goods and services produced in a year, in a country.
output expenditure model: Y = C+I+G. Since, C depend on (Y-T) where Y is the ouput Or income, T is Tax Revenue, C is consumption expenditure, I is Investment expenditure and G is government expenditure.
personal consumption expenditure: A measure of price changes in consumer goods and services.
gross investment: the total amount of investment without taking account of the cost of depreciation.
nominal GDP: A gross domestic product (GDP) figure that has not been adjusted for inflation.
real GDP: a macroeconomic measure of the value of output economy adjusted for price changes (that is, inflation or deflation). The adjustment transforms the money-value measure, called nominal GDP, into an index for quantity of total output.
price index: is a normalized average of prices for a given class of goods or services in a given region, during a given interval of time.
underground economy: is trade, goods and services that are not part of the official economy of a country; this may be legal activities where taxes are not paid, or illegal activities, such as drug dealing and prostitution.
gross national product: the market value of all goods and services produced in one year by labor and property supplied by the residents of a 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 dollar 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