Name: 
 

ECON CH-12 VOCABULARY



Matching
 
 
a.
price level
g.
aggregate supply
b.
nominal GDP
h.
depreciation
c.
intermediate goods
i.
nondurable goods
d.
gross domestic product (GDP)
j.
durable goods goods
e.
aggregate demand
k.
gross national product (GNP)
f.
real GDP
l.
national income accounting
 

 1. 

that last for a relatively long time, such as refrigerators, cars, and DVD players
 

 2. 

the annual income earned by U.S.- owned firms and U.S. citizens
 

 3. 

goods used in the production of final goods
 

 4. 

a system that collects macroeconomic statistics on production, income, investment, and savings
 

 5. 

the amount of goods and services in the economy that will be purchased at all possible price levels
 

 6. 

GDP expressed in constant, or unchanging, prices
 

 7. 

goods that last a short period of time, such as food, light bulbs, and sneakers
 

 8. 

the total amount of goods and services in the economy available at all possible price levels
 

 9. 

the average of all prices in the economy
 

 10. 

the dollar value of all final goods and services produced within a country’s borders in a given year
 

 11. 

the loss of the value of capital equipment that results from normal wear and tear
 

 12. 

GDP measured in current prices
 
 
a.
leading indicators
f.
peak
b.
business cycle
g.
trough
c.
contraction
h.
depression
d.
recession
i.
economic growth
e.
expansion
j.
stagflation
 

 13. 

a period of economic decline marked by falling real GDP
 

 14. 

a prolonged economic contraction
 

 15. 

a period of economic growth as measured by a rise in real GDP
 

 16. 

a recession that is especially long and severe
 

 17. 

a steady, long-term increase in real GDP
 

 18. 

key economic variables that economists use to predict a new phase of a business cycle
 

 19. 

the lowest point in an economic contraction, when real GDP stops falling
 

 20. 

a period of macroeconomic expansion followed by a period of contraction
 

 21. 

a decline in real GDP combined with a rise in the price level
 

 22. 

the height of an economic expansion, when real GDP stops rising
 
 
a.
capital deepening
d.
savings rate
b.
technological progress
e.
saving
c.
real GDP per capita
 

 23. 

the proportion of disposable income that is saved
 

 24. 

process of increasing the amount of capital per worker
 

 25. 

real GDP divided by the total population
 

 26. 

an increase in efficiency gained by producing more output without using more inputs
 

 27. 

income not used for consumption
 



 
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