Textbook Notes (270,000)
CA (160,000)
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RSM100Y1 (400)
Chapter 2

RSM100Y1 Chapter Notes - Chapter 2: Gross National Product, Purchasing Power Parity, Stabilization Policy

Rotman Commerce
Course Code
John Oesch

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Business cycle: pattern of short-term ups and downs (expansions and contractions) in
an economy.
Recession: period during which aggregate output, as measured by real GDP, declines.
Depression: particularly severe and long-lasting recession.
Aggregate output: total quantity of goods and services produced by an economic
system during a given period.
Standard of living: total quantity and quality of goods and services that a countrys
citizens can purchase with the currency used in their economic system.
Gross domestic product (GDP): total value of all goods and services produced
within a given period by a national economy through domestic factors of production.
Gross national product (GNP): total value of all goods and services produced by a
national economy within a given period regardless of where the factors of production
are located. 这个国家在所有地方所生产的产品都包括在内。
Real GDP: GDP calculated to account for changes in currency values and prices.
Nominal GDP: GDP measured in current dollars or with all components valued at
current prices.
Purchasing power parity: principle that exchange rates are set so that the prices of
similar products in different countries are about the same. (同一商品在各个国家
Productivity: any activity that adds value to some input, transforming it into an
output for a customer (whether external or internal). (同样的钱睇下边个生产得多
National debt (国债): The total amount of money that a country owes its creditors.
Budget deficit: the result of the government spending more in one year that it takes in
during that year.
Stability: condition in an economy system in which the amount of money available
and the quantity of goods and services produced are growing at about the same rate.
Inflation: occurrence of widespread price increases throughout an economic system.
Consumer price index (CPI): measure of the prices of typical products purchased by
consumers living in urban areas. It used to measure inflation.
Deflation: a period of generally falling prices.
Unemployment: level of joblessness among people actively seeking work in an
economic system.
Stabilization policy: government policy, embracing both fiscal and monetary policies,
the goal of which is to smooth out fluctuations in output and unemployment and to
stabilize prices.
Fiscal policies: policies by means of which the government collects and spends
revenue.(using tax)
Monetary policies: policies by means of which the government controls the size of
the nations money supply. (Interest rate)
Technology: all the ways firms create value for their constituents.
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