· National income accounting – refers to the bookkeeping system that a national government uses to measure the level of the country's economic activity in a given time period.
· Gross domestic product - The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis.
· Output expenditure model - total output responds to the demand for it.
· Personal consumption expenditure - payments by households for goods and services.
· Gross Investment - Gross private domestic investment is the measure of investment used to compute GDP. This is an important component of GDP because it provides an indicator of the future productive capacity of the economy.
· Nominal GDP - GDP as actually measured, thus in current dollars. Contrasts with real GDP.
· Real GDP - Real gross domestic product (GDP) is a macroeconomic measure of the size of an economy adjusted for price changes.
· Price Index - an index that traces the relative changes in the price of an individual good (or a market basket of goods) over time.
· Underground economy - An expression used to describe all market exchange that goes unreported either because it is illegal or because those involved want to evade taxes.
· Gross national product - former measure of the United States economy; the total market value of goods and services produced by all citizens and capital during a given period (usually 1 yr)
· Business cycle - The pattern followed by macroeconomic variables, such as GDP and unemployment that rise and fall irregularly over time, relative to trend. There is some tendency for cyclical movements of large countries to cause similar movements in other countries with whom they trade.
· Expansion – a period of economic growth.
· Peak – a high point.
· Contraction – a recession.
· Recession – is a decline in real GDP for months or more.
· Depressions – are prolonged and severe recessions.
· Trough – occurs when demand, production, and employment reach their lowest levels.
· Leading indicators – anticipate the direction in which the economy is headed
· Coincident indicators – change as the economy moves from one [phase of the business cycle to another.
· Lagging indicators – change months after an upturn or a downturn in the economy has begun and help economists predict the duration of economic upturns and downturns.
· Real GDP per capita – related to all economic indicators that are calculated, usuallyat the end of a fiscal year.
· Labor Productivity- Work force productivity is the amount of goods and services that a laborer produces in a given amount of time.
· Productivity growth – a measure of output from a production process, per unit of input
· Capital-to-labor ratio – for example, labor production is typically measured as a ratio of output.
· Capital deepening – a term used in economics to describe an economy where capital per worker is increasing. This is also referred to as increase in the capital intensity.