ECON 2303 Study Guide - Midterm Guide: Government Spending, Loanable Funds, Nominal Interest Rate
Document Summary
Business cycle: short run path cycles of economics in expansion and contractions. Consumption: final purchases of goods and services by household. Economic contraction: recession, real gdp decreasing in the short run path. Economic expansion: real gdp increasing in the short run path. Final good: buy it, consume it, and don"t re-produce it to another party (buy a bread and eat it) Gdp deflator: nominal gdp goes in and real gdp goes out. Great recession: what happens from 08 to 2010. Gross domestic product: calculates market value of all goods and services within a nation, output becomes input. Gross national product: calculates everything with the citizens of this country. Intermediate good: buy a product, and re-sell it. Investment: everything you buy in order to produce. Net export (nx: represents small fraction of total gdp, exports subtract imports. Nominal gdp: gdp measures current prices. Per capita gdp: formula, average living standards for the people of the country, gdp per person.
