ECONOMICS Chapter 12, Section 1 - Funsheet Key

1. The standard we are covering is SSEMA1. 2. Macroeconomics is the study of the behavior and decision making of entire economies. 3. Gross domestic product is the dollar value of all final goods & services produced in a countrys borders in a given year. 4. Intermediate goods are goods used to produce final goods & services. 5. Durable goods are goods that last for a relatively long time. 6. Nondurable goods are goods that last for a short period of time. 7. Nominal GDP is GDP measured in current prices. 8. Real GDP is GDP expressed in constant, or unchanging prices. 9. Aggregate means the sum total of. 10. Aggregate supply is the total amount of goods & services in the economy available at all possible price levels. 11. Aggregate demand is the amount of goods & services in the economy that will be purchased at all possible price levels.