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18 Cards in this Set
- Front
- Back
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National income accounts-
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A set of official government statistics on aggregate economic activity.
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Gross domestic product (GDP)-
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The value at current market prices of all final goods and services produced annually in a given country.
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Final goods and services-
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Goods and services that are sold to or ready for sale to parties that will use them for consumption, investment, government purchases, or export.
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Value added-
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The dollar value of an industry's sales less the value of intermediate goods purchased for use in production.
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Gross national product (GNP)-
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The dollar value at current market prices of all final goods and services producedannually by factors of production owned by residents of a given country, regardless of where those factors are located.
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Net domestic product (NDP)-
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Gross domestic product minus an allowance (called the capital consumption allowance) that represents the value of capital equipment used up in the production process.
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National income-
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The total income earned by a country's residents, including wages, rents, interest payments, and profits.
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Current account balance-
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The value of a country's exports of goods and services minus the value of its imports of goods and services plus its net transfer receipts from foreign sources.
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Financial inflow-
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Purchases of domestic assets by foreign buyers and borrowing from foreign lenders; also often called capital inflows.
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Financial outflow-
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Purchases of foreign assets by domestic residents or loans by domestic lenders to foreign borrowers; also often called capital outflows.
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GDP deflator-
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A weighted average of the prices of all final goods and services produced in the economy.
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Base year-
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The year that is chosen as a basis for comparison in calculating a price index or price level.
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Price level-
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A weighted average of the prices of goods and services expressed in relation to a base year value of 1.0.
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Price index-
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A weighted average of the prices of goods and services expressed in relation to a base year value of 100.
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Consumer price index (CPI)-
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A price index based on the market basket of goods and servicespurchased by a typical urban household.
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Producer price index (PPI)-
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A price index based on a sample of goods and services bought by business firms.
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Current account items:
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-Merchandise imports and exports.
-Services -Factor income -Transfers --Current account balance |
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Price index biases:
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-Substitution bias
-Quality bias These are built-in biases that have caused the consumer price index to overstate inflation. |
