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Flashcards in Chapter 3 Deck (5)
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1
Q

Government Budget Deficit

A

Flow - Quantity measured per unit time.

2
Q

Government Debt

A

Stock - Quantity measured at a given point in time.

3
Q

Nominal GDP

A

Value of all final goods and services produced using current prices.

It can increase either because price increases and/or quantity increases.

4
Q

Real GDP

A

Value-of goods and services measured using the prices of a base year constant set of prices.

Better measure of economic well-being because it is not affected by changes in prices.

5
Q

Inflation Rate

A

Percentage increase in the overall level of prices.