Economic Vocabulary

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

A decrease in the general price level of goods and services, occurring when the inflation rate falls below 0%.

A significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

The use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy.

Actions undertaken by a central bank to manipulate the money supply and credit conditions to stimulate or restrain economic activity.

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

An economic model of price determination in a market.

A market in which share prices are rising, encouraging buying.

A market in which prices are falling, encouraging selling.

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

The value of one currency for the purpose of conversion to another.

The difference in value between a country's imports and exports.

Occurs when a country's exports exceed its imports.

Occurs when a country's imports exceed its exports.

Goods that are used in producing other goods, rather than being bought by consumers (e.g., machinery, tools).

Goods bought and used by consumers, rather than by manufacturers for producing other goods.

An economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses.

An economy in which production, investment, prices, and incomes are determined centrally by a government.

An economic system combining private and public enterprise.

The part of an economy that is controlled by the government.

The part of the national economy that is not under direct government control.

Persistent high inflation combined with high unemployment and stagnant demand in a country's economy.

A piece of economic data, usually of macroeconomic scale, that is used by analysts to interpret current or future investment possibilities or to judge the overall health of an economy.