| A | B |
|---|
| capital goods | Goods that are used to produce other goods and services |
| depression | A period of economic decline when GNP is rapidly falling and unemployment is very high |
| double counting | Counting the same production more than once in determining GNP |
| durable goods | Goods that are intended to last a reletively long period of time |
| ethical | Based on principles of right or wrong; moral |
| exports | Goods or services sold to other countries |
| Gross Private Domestic Investment | A factor used to calculate GNP which includes the value of all capital goods created in the economy during the year and inventories held by business firms from current year's production |
| Government purchases of goods and services | A factor used in calculating GNP which includes all purchases made by the government and the wages of all government workers |
| Gross National Product | The final total value of all goods and services produced in the economy in a year's time |
| imports | Goods or services purchased from other countries |
| Net exports of goods and services | A factor used in the calculation of GNP which is determined by subtracting imports from exports |
| nondurable goods | Goods that are eventually used up such as shampoo, gasoline, haircuts, ect. |
| personal consumption expenditures | A factor used to calculate GNP which includes the final market value of all goods and services purchased for direct consumption by individuals, families, and nonprofit organizations |
| productivity increase | An increase in production brought about by more efficient use of the same amounts of labor and capital |
| qualitative | Of, or pertaining to, and item's worth or goodness |
| recession | A six-months' decline in GNP |
| standard of living | The style in which families/individuals live; an indication of material well-being |
| trade deficit | The result of imports' exceeding exports |
| trade surpluse | The result of exports exceeding imports |
| transfer payments | Payments made by the government for which no goods or services are received in exchange, such as welfare benefits, veterans benefits, disaster aid, and otehr similar paymneny |
| underground economy | An economy chactorized by cash or barter transactions for which no receipts are kept |
