GDP: The total market value of all goods and services produced within the political boundaries of an economy during a given period of time, usually one year. This is the government's official measure of how much output our economy produces.
Nominal GDP: The total market value, measured in current prices, of all goods and services produced within the political boundaries of an economy during a given period of time, usually one year. The key is that nominal gross domestic product is measured in current, or actual prices.
Real GDP: The total market value, measured in constant prices, of all goods and services produced within the political boundaries of an economy during a given period of time, usually one year. The key is that real gross domestic product is measured in constant prices, the prices for a specific base year.
Contractionary Fiscal Policy :A policy to decrease governmental spending and/or an increase in taxes
Consolidation: the unification of two or more corporations by dissolution of existing ones and creation of a single new corporation
Foreign Exchange Rate: Price of the currency of one nation in terms of the currency of another nation.
Supply-Side Economics :Focus on the effects of national output potential or supply through reduction of taxes and government regulation for businesses designed to increase productivity and economic growth.
Aggregate Demand: The total (or aggregate) real expenditures on final goods and services produced in the domestic economy that buyers would willing and able to make at different price levels, during a given time period
Aggregate Supply: The total (or aggregate) real production of final goods and services available in the domestic economy at a range of price levels, during a given time period.
Stagflation: High inflation rates at the same time the economy has high unemployment rates.
Unemployment Rate: The proportion of the civilian labor force 16 years or older that is actively seeking employment, but is unemployed and not engaged in the production of goods and services.
Natural Unemployment Rate: The rate of unemployment that occurs when the economy is at full employment. This rate is primarily composed of frictional and structural unemployment.
Subsidy: A payment from government to individuals or businesses without any expectations of production. The best way of thinking about a subsidy is as a negative tax.
Inflation: A rate of increase in the general price level of all goods and services. (This should not be confused with increases in the prices of specific goods relative to the prices of other goods.)
Opportunity Cost : The highest-valued sacrifice needed to get a good or service.
Repatriation : the ability to take all profits back to the firm's home country.
Maastricht Treaty: treaty that created the European Union (EU). The treaty was approved at Maastricht in the Netherlands by the heads of government of the 12 members of the European Community (EC) in December 1991 and was signed on February 7, 1992. The 12 nations were Belgium, Denmark, France, Germany, the United Kingdom, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. The treaty reflected the intention of the EC nations to broaden the scale of monetary and economic union and begin serious consideration of joint policies in regard to defense, citizenship, and the protection of the environment. Under the Maastricht Treaty, European citizenship was granted to citizens of each member state. Customs and immigration agreements were enhanced to allow European citizens greater freedom to live, work, or study in any of the member states, and border controls were relaxed. The treaty created joint foreign and monetary policies. It called for the eventual creation of a single currency, the European Currency Unit (ECU), and a central bank, which would coordinate the monetary policies of the central banks of the respective nations.