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| An expansion, with connotations of being fast and quite possibly unsustainable; often followed by a bust |
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| the pattern of periods of faster economic growth alternating with periods of slower or negative economic growth |
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| a relatively dast economic contraction, usually following a boom |
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| a period of shrinking ecnomic activity |
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| a decrease in the overall price level, as distinct from a decrese in the price od particular good |
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| a deep long recession with a slow recovery |
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| a decrease in the rate of inflation; usually implies that there is still positive inflation just not as much as before |
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| the begining of a recession |
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| change in how an economy functions, potentially involving changes in resourse use, technology, social organization, and the role of markets; often happens along w/economic growth, but the two are not identical |
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| the part of the business cycle where economic growth is relatively high |
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| an increase in the overall price level, as distinct from a increase in the price of one particular good |
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| the percentage in the overall price level during some period, usually a year |
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| inprovement in the material stanard of living that an economy provides; an adequate living standard is one component of well-being |
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| a statement regarding how things should be, based on the speaker's values but hopefully also based on reasonable positive statements |
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| the top of the business cycle, the point at which expansion stops and contraction sets in |
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| a statement regarding how things are, or an objective statement about the cause-and0effects relationships |
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| a period of slow or negative ecnomic growth, often running forom a peak to trough |
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| the early part of an expansion, returing to higher employment and faster economic growth after a recession |
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| bottom of the business cycle, the point at which contraction ends and recovery begins |
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| being out of work INVOLUNTARILY; at the current prevailing wage, you would like to be employed but can't find a job |
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| the number of people unemployed, divided by the labor force |
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| a complex conditon with material, psychological, and social components, such as: adequate food, clothing, and shelter; cultural stimulation; family and companionship; sense of being needed; health; security |
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An entity that can make economic decisions. In macro is most commonly the gov't
(i.e. person buying a car, firm decides what to make, where to make it, where to get the supplies) |
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Definition
| A way of representing the world to understand how some aspect of it works. Awlays simplify when you make them. Need balance, simple enough to undersand them |
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"other things being equal"
Not because it's true but because it allows you to think clearly about specific linkages |
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| Employment, control, ownership, ability to dispoe of, and bequeath land, capital, and other forms of property by persons and privately owned firms |
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| A variable measured at one point in time: your bank account, or the value of your portfolio, or National debt |
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A variable measured over an interval of time.
i.e income per month, gov't deficit per year |
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| Gov't decisions on how much to tax and how much to spend |
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| Gov't decisions about rates and the money supply; usually carried out by the central bank |
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Definition
V2 = V1 x (1+r)^t
V1: starting value
V2: ending value
r: periodic growth rate
t: number of periods |
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Definition
To estimate the doubling time, divide the growth rate into 72:
if your GDP is 2.5% per year how long will it take to double?
72/2.5=28.8 |
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| Measurements of the same thing taken at different times, preferably evenly spaced times |
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| First law of Thermodynamics |
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Definition
| Energy can be neither created nor destroyed, only transformed. "there's no free lunch" |
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| Second law of Thermodynamics |
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Definition
| Every transformation of energy converts some energy into waste heat |
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Definition
| a mearsureable difference across a distance of temperature, pressure, chemical concentration, or other variables. |
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| Physical structures that arise spontaneously in the presence of sufficiently large gradients, they require a gradient to come into existence, they dissipate (reduce) the gradient that fed them |
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| Primary producers --> Primary Consumers --> Secondary Consumers --> Tertiary Consumers --Final Use |
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| National Income and Product Accounts (NIPA) |
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Definition
basic data on economic performance including output, savings and investments, and foreign trade.
It is maintained by the BEA which is part of the Department of Commerce of the federal gov't |
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Term
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Definition
C: Consumption
I: Investment
G: Gov't expenditure
Ex: Exports
Im: Imports |
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| spending by the household and institutions sector |
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| items used (but not used up) to make other itmes |
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the creation of capital
i.e building a factory, manufacturing machine tools, building roads, canals and irrigation systems, reparing a building |
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Definition
| the difference between value of exported goods and services and imported goods and services |
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Definition
| Consumption + investment+ gov't expenditure + net exports |
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Definition
| Divide the component you're interested in by the total GDP |
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Term
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Definition
GDP = Consumption + gov't expenditure + savings
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