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| Term | Definition |
|---|---|
| GDP Deflator | A measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year. It is calculated by dividing nominal GDP by real GDP and multiplying by 100. GDP stands for gross domestic product, the total monetary value of all final goods and services produced within the territory of a country over a particular period (quarterly or annually). |
| General Equilibrium | In neoclassical economics, the assumption that production, employment, investment, and income distribution are all determined by a condition of equilibrium (with demand equaling supply) in every single market, including markets for both factors of production and produced goods and services. |
| Gift Economy | A mode of exchange where valuables are given without an explicit agreement for immediate or future rewards. Unlike a market economy, gifts in this system are not sold. |
| Gini Coefficient | A statistical measure of inequality ranging from 0 (perfect equality) to 1 (perfect inequality). It indicates the extent to which the distribution of income or wealth among individuals or households deviates from a perfectly equal distribution. |
| Globalization | A historical process through which economic activity takes place across national borders. It includes international trade, foreign direct investment, international financial flows, and international migration. |
| Goods | Tangible items that satisfy human wants and provide utility. Goods are transferable and distinct from services, which are not transferable. |
| Government Production | Production undertaken directly by governments or government agencies to meet public needs, such as education, healthcare, policing, and other public services. |
| Government Revenue | The total revenue received by all three levels of government (federal, state, and local) in the form of taxes and tariffs. |
| Government Spending | The total expenditure made by all three levels of government (federal, state, and local) for public services. |
| Greenhouse Gases | Gases, including carbon dioxide, methane, and nitrous oxide, that trap heat near the Earth’s surface, contributing to global warming and climate change. |
| Gross Domestic Product (GDP) | The total value of all goods and services produced for money in an economy, evaluated at their market prices. It excludes the value of unpaid work and is calculated by adding up the value-added at each production stage. |
| Gross Domestic Product, Deflator (GDP Deflator) | A price index adjusting the overall value of GDP according to the average increase in the prices of all output. It equals the ratio of nominal GDP to real GDP. |
| Gross Domestic Product, Per Capita | The level of GDP divided by the population of a country or region. Changes over time are often interpreted as a measure of changes in the average standard of living, though this doesn’t account for income distribution differences or the value of unpaid labor. |
| Growth Recession | A situation in which economic growth is slow but not low enough to be a recession, yet unemployment still increases. |
| GDP (Gross Domestic Product) | The total value of all goods and services produced within a country’s borders in a specific period is a key indicator of a nation’s economic health. |
| Globalization | The process of increased interconnectedness and interdependence among countries, economies, and cultures through the exchange of goods, services, information, and ideas. |
| Gini Coefficient (Gini Index) | A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality). |
| Gold Standard | A monetary system in which a country’s currency is directly tied to a specific quantity of gold, providing a fixed exchange rate. |
| Goods | Tangible products or items that have economic value and satisfy human wants and needs. |
| Government Debt | The total amount of money that a government owes to external creditors and domestic lenders from borrowing over time. |
| Green Economy | An economy that promotes sustainable development by incorporating environmental considerations into economic policies and practices. |
| Gross National Product (GNP) | Similar to GDP, GNP includes the total value of goods and services produced by a country’s residents, both domestically and abroad. |
| Growth Rate | The percentage increase in a country’s economic output or the growth of a specific economic indicator over a specified period. |
| Game Theory | A branch of economics that studies strategic interactions between rational decision-makers and their choices to achieve specific outcomes. |
| Government Subsidy | Financial assistance provided by the government to support certain industries, businesses, or activities, typically aimed at promoting public welfare or economic development. |
| Goodwill | In accounting, goodwill represents the intangible value of a business, often associated with its reputation, customer base, and brand. |
| General Equilibrium | A theoretical framework in economics that analyzes the interdependence of all markets within an economy, considering the simultaneous interactions of supply and demand. |