ECON1007 Chapter 20 GDP and Economic Growth St.

Lawrence College
Keywords Business School (K)
Rajni Dogra,PhD

1. Business cycle: A periodic but irregular up-and-down movement of total production and
other measures of economic activity.

2. Consumption expenditure: The expenditure by households on consumption goods and

services.

3. Depreciation: The decrease in the value of capital that results from its use and from
obsolescence.

4. Final good or service: A good or service that is produced for its final user and not as a
component of another good or service.

5. Government expenditure on goods and services: The expenditure by all levels of

government on goods and services.

6. Gross domestic product (GDP): The market value of all the final goods and services produced
within a country in a given time period.

7. Investment: The purchase of new capital goods (tools, instruments, machines, buildings) and

additions to inventories.

8. Intermediate good or service: A good or service that is used as a component of a final good
or service.

9. Net domestic product at factor cost: The sum of the wages, interest, rent, and profit.

10. Net exports of goods and services: The value of exports of goods and services minus the
value of imports of goods and services.

11. Net taxes: Taxes paid minus cash benefits received from governments.

12. Nominal GDP: The value of final goods and services produced in a given year expressed in
terms of the prices of that same year.

13. Potential GDP: The value of real GDP when all the economy’s factors of production—labor,
capital, land, and entrepreneurial ability—are fully employed.

14. Real GDP: The value of the final goods and services produced in a given year expressed in
terms of the prices in a base year.

15. Real GDP per person: Real GDP divided by the population.

16. Recession: A period during which real GDP decreases for at least two successive quarters.
ECON1007 Chapter 20 GDP and Economic Growth St. Lawrence College
Keywords Business School (K)
Rajni Dogra,PhD
17. Saving: The amount of income that is not paid in net taxes or spent on consumption goods
and services.

18. Standard of living: The level of consumption of goods and services that people enjoy, on
average.

19. Statistical discrepancy: The discrepancy between the expenditure approach and the income
approach estimates of GDP, calculated as the GDP expenditure total minus the GDP income
total.

20. Total expenditure= C+I+G+NX

21. Underground production: The production of goods and services hidden from the view of
government.

Important Websites:

1. http://www5.statcan.gc.ca/cansim/a26?
lang=eng&retrLang=eng&id=3800064&&pattern=&stByVal=1&p1=1&p2=31&t
abMode=dataTable&csid=
2. http://data.worldbank.org/data-catalog/GDP-ranking-table
3. http://www.statisticstimes.com/economy/countries-by-gdp.php
4. http://www.huffingtonpost.ca/2016/06/13/b-c-ontario-expected-to-lead-
provinces-in-economic-growth-conference-board_n_10436628.html

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