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22 Cards in this Set
- Front
- Back
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National income accounting |
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) |
The total market value of all final goods and services produced in a given year |
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Intermediate goods |
Goods and services that are purchased for resale or for further processing/manufacturing |
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Final goods |
Goods and services that are purchased for final use by the consumer |
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Multiple counting |
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 |
Market value of a firm's output less the value of the inputs the firm has bought from others |
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Expenditures approach |
Adds all expenditures made for final goods and services to measure the GDP (aka output approach) |
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Income approach |
Adds all the income generated by the production of final goods and services to measure the GDP (aka earnings or allocations approach) |
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Personal consumption expenditures (C) |
Consumption expenditures by consumers |
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Gross private domestic investment (Ig) |
Expenditures for newly produced capital goods and for additions to inventories |
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Net private domestic investment |
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) |
Government consumption expenditures and gross investment |
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Net exports (Xn) |
Exports less imports |
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National income |
All the income that flows to American-supplied resources, whether here or abroad |
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Indirect business taxes |
General sales taxes, excise taxes, business property taxes, license fees, and customs duties |
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Consumption of fixed capital |
Huge depreciation charge made against private and social capital each year |
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Net domestic product (NDP) |
GDP less the part of the year's output that is needed to replace capital goods worn out in producing the output; nation's total output avaliable for consumption or additions to the capital stock |
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Personal income (PI) |
All income recieved whether earned or unearned |
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Disposable income (DI) |
Personal income less personal taxes |
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Nominal GDP |
GDP based on the prices that prevailed when the output was produced (aka unadjusted GDP) |
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Real GDP |
GDP that has been deflated/inflated to reflect changes in the price level (aka adjusted GDP) |
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Price index |
Measure of the price of a specified collection of goods and services, called a "market basket", in a given year as compared to the price of an identical (or highly similar) collection of good and services in a reference year |
