Focus on Economic Data: U.S. Real GDP Growth, October 29, 2009
Glossary terms from:
Any activity or organization that produces or exchanges goods or services for a profit.
Fluctuations in the overall rate of national economic activity with alternating periods of expansion and contraction; these vary in duration and degrees of severity; usually measured by real gross domestic product (GDP).
Spending by households on goods and services. The process of buying and using goods and services.
The opportunity to borrow money or to receive goods or services in return for a promise to pay later.
The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.
Goods and services produced in one nation and sold in other nations.
Factors of Production
Productive resources; what is required to produce the goods and services that people want; natural resources, human resources, capital goods and entrepreneurship.
The central bank of the United States. Its main function is controlling the money supply through monetary policy. The Federal Reserve System divides the country into 12 districts, each with its own Federal Reserve bank. Each district bank is directed by its nine-person board of directors. The Board of Governors, which is made up of seven members appointed by the President and confirmed by the Senate to 14-year terms, directs the nation's monetary policy and the overall activities of the Federal Reserve. The Federal Open Market Committee is the official policy-making body; it is made up of the members of the Board of Governors and five of the district bank presidents.
Tangible objects that satisfy economic wants.
Spending by all levels of government on goods and services; includes categories like military, schools and roads.
Gross Domestic Product (GDP)
The market value of all final goods and services produced in a country in a calendar year.
Individuals and family units that buy goods and services (as consumers) and sell or rent productive resources (as resource owners).
Goods and services bought from sellers in another nation.
Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.
A rise in the general or average price level of all the goods and services produced in an economy. Can be caused by pressure from the demand side of the market (demand-pull inflation) or pressure from the supply side of the market (cost-push inflation).
An itemized list of goods held by a person or business. Also a quantity of goods held in stock.
The purchase of capital goods (including machinery, technology or new buildings) that are used to produce goods and services. In personal finance, the amount of money invested in stocks, bonds, mutual funds and other investment instruments.
The quantity and quality of human effort available to produce goods and services.
The study of economics concerned with the economy as a whole, involving aggregate demand, aggregate supply, and monetary and fiscal policy.
Places, institutions or technological arrangements where or by means of which goods or services are exchanged. Also, the set of all sale and purchase transactions that affect the price of some good or service.
Exports minus imports.
The current value of a person's assets minus liabilities.
The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.
The weighted average of the prices of all goods and services in an economy; used to calculate inflation.
A good or service that can be used to satisfy a want.
A process of manufacturing, growing, designing, or otherwise using productive resources to create goods or services used to to satisfy a want.
In a credit arrangement, the total amount spent during the billing cycle.
The amount of goods and services that a monetary unit of income can buy.
Real vs. Nominal
Two ways of expressing monetary values. Nominal monetary values are measured in current prices; real monetary values are measured in constant prices, that is, in prices of a given or base period. Real monetary values are obtained by adjusting nominal monetary values with an appropriate index of prices.
A decline in the rate of national economic activity, usually measured by a decline in real GDP for at least two consecutive quarters (i.e., six months).
Payments for labor resources; unlike wages, not explicitly based on the number of hours worked. See also Wages.
An exchange of goods or services for money.
To keep money for future use; to divert money from current spending to a savings account or another form of investment.
Disposable income (income after taxes) minus consumption spending.
Activities performed by people, firms or government agencies to satisfy economic wants.
The situation that results when the quantity supplied of a product exceeds the quantity demanded. Generally happens because the price of the product is above the market equilibrium price.
Compulsory payments to governments by households and businesses.
The exchange of goods and services for money or other goods and services.
The number of people without jobs who are actively seeking work.
The number of unemployed people, expressed as a percentage of the labor force.
Money taken out of an employee's paycheck and sent to the government and credited to the employee's tax bill.
Effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.