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22 Cards in this Set
- Front
- Back
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National Income Accounting
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The techniques used to measure the overall production of the economy and other related variables for the nation as a whole.
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Gross Domestic Product (GDP)
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The total market value of all final goods and services produced annually within the boundaries of the United States, whether by U.S.- or foreign supplied resources.
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Intermediate Goods
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Products that are purchased for resale or further processing or manufacturing.
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Final Goods
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Goods and services that have been purchased for final use and not for resale or further processing or manufacturing.
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Multiple Counting
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Wrongly including the value of intermediate goods in the GDP; counting the same good or service more than once.
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Value Added
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The value of the product sold by a firm less the value of the products (materials) purchased and used by the firm to produce the product.
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Expenditures Approach
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The method that adds all expenditures made for final goods and services to measure the GDP.
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Income Approach
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The method that adds all the income generated by the production of final goods and services to measure the GDP.
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Personal Consumption Expenditures (C)
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The expenditures of households for durable and nondurable consumer goods and services.
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Gross Private Domestic Investment (Ig)
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Expenditures for newly produced capital goods (such as machinery, equipment, tools, and buildings) and for additions to inventories.
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Net Private Domestic Investment
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Gross private domestic investment less consumption of fixed capital; the addition to the nation's stock of capital during a year.
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Government Purchases (G)
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Expenditures by government for goods and services that government consumes in providing public goods and for public (or social) capital that has a long lifetime; the expenditures of all governments in the economy for those final goods and services.
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Net Exports (Xn)
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Exports minus Imports.
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Taxes on Production and Imports
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A national income accounting category that includes such taxes as sales, excise, business property taxes, and tariffs which firms treat as costs of producing a product and pass on (in whole or in part) to buyers by charging a higher price.
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National Income
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Total income earned by resource suppliers for their contributions to GDP plus taxes on production and imports; the sum of wages and salaries, rent, interest, profit, proprietor's income, and such taxes.
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Consumption of Fixed Capital
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An estimate of the amount of capital worn out or used up (consumed) in producing the GDP; also called depreciation.
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Net Domestic Product (NDP)
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GDP less the part of the year's output that is needed to replace the capital goods worn out in producing the output; the nation's total output available for consumption or additions to the capital stock.
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Personal Income (PI)
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The earned and unearned income available to resource suppliers and others before the payment of personal taxes.
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Disposable Income (DI)
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Personal income less personal taxes; income available for personal consumption expenditures and personal saving.
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Nominal GDP
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The GDP measured in terms of the price level at the time of the measurement (unadjusted for inflation).
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Real GDP
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GDP adjusted for inflation; GDP in a year divided by the GDP price index for that year, the index expressed as a decimal.
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Price Index
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An index number that shows how the weighted-average price of a "market basket" of goods changes over time.
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