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