GDP

Capital Goods

Manufactured or constructed items that are used to produce goods and services

Capital-goods Investment

The use of a business's funds to purchase new equipment and/or new facilities or to expand existing facilities

Discount Rate

The rate of interest the Federal Reserve charges banks for borrowing money

Domestic Economic Problems

Difficulties with the allocation of resources within a country's borders

Double Counting

Including the same production more than once in determining GDP

Exports

Goods or services sold to other countries

Government Purchases of Goods and Services

A factor used in calculating GDP which includes all purchases made by the government and the wages of all government workers

Gross Domestic Product

The final market value of the total output of all goods and services produced within a country's geographic boundaries during a year's time

Gross Private Domestic Investment

A factor used to calculate GDP 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

Human Resources

People who work to produce goods and services

Imports

Goods or services purchased from other countries

Inflation

A rapid rise in prices that may occur when demand exceeds supply or when productivity declines and costs of labor go up

Intermediate Products

Items that are part of other finished products

Inventories

Stocks of goods, raw materials, or parts that a business has on hand

Market Price

Actual price that prevails in a market at any particular time

Natural Resources

Items that are found in nature and used to produce goods and services

Net Exports of Goods and Services

A factor used in the calculation of GDP that is determined by subtracting imports from exports

Nonprofit Institutions

Businesses and organizations whose intent is to make enough money to support their mission

Nonresidential Investment

The money businesses invest in buildings, equipment, vehicles, furniture, etc.

Personal Consumption Expenditures

A factor used to calculate GDP that includes the final market value of all services and new and used goods purchased for consumption by individuals and nonprofit organizations

Prime Interest Rate

The interest rate that banks offer to their best credit customers

Productivity

The amount and the value of goods and services produced (outputs) from set amounts of resources (input)

Raw Materials

Items in their natural state or condition

Recession

A six-month's contraction in GDP

Residential Investment

The money landlords invest in the buildings and the equipment they own and rent to others

Sales Forecasts

A prediction of future sales over a specific time period

Standard of Living

The general conditions in which people live; quality of life

Suppliers

Vendors; businesses that sell to other businesses

Technology

Scientific applications to business objectives or the methods used to attain those objectives

Trade Deficit

An unfavorable balance of trade when a nation's imports are greater than its exports

Trade Surplus

A favorable balance in trade when a nation's exports are greater than its imports

Trading Partners

Nations that sell their goods and services to each other

Transfer Payments

Monies paid by the government in which no goods or services are received in exchange; such as Social Security payments, welfare benefits, veteran's benefits, disaster aid, and other similar payments

Uncounted Production

Goods and services that are not counted in GDP because money is not paid for them

Underground Economy

An economy that involves transactions in which money changes hands, but no receipts are kept