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Econ Chapter 12

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Term
Definition
Aggregate Demand   the amount of goods and services in the economy that will be purchased at al possible price levels  
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Aggregate Supply   the total amount of goods and services in the economy available at all possible price levels  
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Business Cycle   a period of macroeconomics expansion followed by a period of contraction  
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Capital Deepening   process of increasing the amount of capital per worker  
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Contraction   a period of economic decline marked by falling real GDP  
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Depreciation   the loss of value of capital equiptment that results from normal wear and tear.  
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Depression   a recession that is especially long and severe  
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Durable Goods   goods that last for a relatively long time, such as refridgerators, cars, and DVD players  
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Economic Growth   steady, long-term increase in real GDP  
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Expansion   a period of economic growth as measured by a rise in real GDP  
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Gross Domestic Product   the dollar value of all final goods and services produced within a country's borders in a given year  
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Gross National Product   (GNP) the annual income earned by U.S.- owned firms and U.S. citizens  
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Intermediate Goods   goods used in the production of final goods  
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Leading Indicators   key economic variables that economists use to predict a new phase of a business cycle  
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National Income Accounting   a system that collects macroeconomics statistics on production, income, investment, and savings  
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