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18 Cards in this Set
- Front
- Back
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Gross Domestic Product |
the total market value of all final good & services produced in a given year |
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Intermediate Goods |
goods & services that are purchased for resale or for further processing |
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Final Goods |
Goods & Services that are purchased for final use by the consumer, not for resale or further processing |
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expenditures approach |
as the sum of all the money spend in buying it |
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income approach |
as the income derived or created from producing it |
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net exports |
"exports less imports" |
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personal income |
includes all income received whether earned or unearned |
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disposable income |
personal income less personal taxes |
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nominal GDP |
a GDP based on the prices that prevailed when the output was produced |
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real GDP |
a GDP that had been deflated or inflated to reflect changes in the price level |
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price index |
price of a specified collection of goods |
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Why is the value of final goods included in GDP but the value of intermediate goods excluded? |
The value of final goods already includes the value of all intermediate good that were used in producing them |
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Nonproduction Transactions that do not get calculated into GDP |
Public Transfer Payments Private Transfer Payments Stock Market Transactions Secondhand Sales |
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What are the variables or areas that are added up to determine the expenditures approach to calculating GDP |
Consumption expenditures by households Investment expenditures by business Gov purchase of goods & services Expenditures by foreigners |
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What variables are added together to calculate the income approach to GDP |
Wages Rent Interest Profits Statistical Adjustments |
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National income |
all the income that flows to American supplied resources |
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Domestic Income |
total output produced within USA regardless of nationality |
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Shortcomings to GDP |
Leisure Nonmarket Transactions Improved Product Quality The Underground Economy GDP and the environment Composition and Distribution of Outputs Per Capita Output |
