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32 Cards in this Set
- Front
- Back
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national income and product accounts |
national accounts; keep track of the flows of money between different sectors of the economy |
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consumer spending |
household spending on goods and services |
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stock |
a share in the ownership of a company held by a shareholder |
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bond |
borrowing in the form of an IOU that pays interest |
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government transfers |
payments by the government to individuals for which no good or service is provided in return |
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disposable income |
equal to income plus government transfers minus taxes, the total alunt of household income available to spend on consumption and to save |
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private savings |
equal o disposable income minus consumer spending, is disposable income that is not spent on consumption |
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financial markets |
the banking, stock, and bond marets, which channel private savings and foreign lending into investment spending, government borrowing, and foreign borrowing |
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government borrowing |
the total amount of funds borrowed by federal, state, and local governments in the financial markets |
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government purchases of goods and services |
total expenditures on goods and services by federal, state, and local governments |
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exports |
goods and services sold to other countries |
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imports |
goods and services purchased from other countries |
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inventories |
stocks of goods and raw materials held to facilitate business operations |
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investment spending |
spending on productive physical capital, such as machinery and construction of buildings, and on changes to inventories |
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final goods and services |
goods and services dols to the final, or end user |
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intermediate goods and services |
goods and services - bought from one firm by another - that are inputs for production of final goods and services |
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GDP (gross domestic product) |
the total value of all final goods and services produced in the economy during a given year |
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aggregate spending |
the sum of consumer spending, investment spending, government purchases of goods and services, and exports minus imports, is the total spending on domestically produced final goods and services in the economy |
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value added |
the value of a producer's sales minus the value of its purchases of intermediate goods and services |
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net exports |
the difference between the value of exports and the value of imports |
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aggregate output |
the economy's total quantity of output of final goods and services |
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real GDP |
the total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year |
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nominal GDP |
the value of all final goods and servives produced in the economy during a given year, calculated usinf the prices current in the year in which the output is produced |
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chained dollars |
the method of calculating changes in real GDP using the average between the growth rate calculated using an early base year the the growth rate calculated using a late base year |
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GDP per capita |
GDP divided by the size of the population; it is equivalent to the everage GDP per person |
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aggregate price level |
a measure of the overall level of prices in the economy |
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market basket |
a hypothetical set of consumer purchases of goods and services |
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price index |
measures the cost of purchasing a given market basket in a given year, where that cost is normalized to that it is equal to 100 in the selected base year |
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infaltion rate |
the percent change per year in a price index, typially the consumer price index |
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CPI (consumer price index) |
measures the cost of the market basket of a typical urban American family |
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PPI (producer price index) |
measures changes in the prices of goods purchased by producers |
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GDP deflator |
100 times the ratio of nominal GDP to real GDP in that year |
