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20 Cards in this Set

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national income accounting
a measurement system used to estimate national income and it's components; one approach to measuring an e xonomy's aggregate performance.
total income
the yearly amount earned by the nation's resources.
final goods and services
goods and services that are at their final stage of production and will not be transformed into yet other goods and services
gross domestic product (GDP)
the total market value of all final goods and services produced by factors of production located within a nation's boarders.
intermediate goods
goods used up entirely in the production of final goods
values added
the dollar value of an industry's sales minus the value of intermediate goods used in production
expenditure approach
computing GDP by adding up the dollar value at current market prices of all final goods and services
income approach
measuring the GDP by adding up all components of national income
durable consumer good
consumer goods that have a life span of more than 3 years
nondurable consumer goods
consumer goods that are used up within 3 years
services
mental or phsycial labor or help purchased by consumers
gross private domestic goods
creation of capital goods, such as factories, that can yield production and hence consumption in the future.
investment
any use of today's resources to expand tomorrows production or consumption
producer durables or capital goods
durable goods having an expected service life of more than three years that are used by businesses to produce other goods and serives
fixed investment
purchases by businesses of newly produced producer durables, or capital goods, such as production of machinery and office equipment.
inventory investment
changes in the stocks of finished goods and goods in the process, as well as changes in the raw materials that businesses keep on hand.
say's law
supply creates it's own demand
money illusion
reacting to changes in money prices rather than relative prices
keynesian short-run aggregate supplu curve
horizontal portion of the aggregate supply curve in which there is excessive unemployment and unused capacity in the economy
short-run aggregate suppluy curve
relationship betweeb total planned economywide production and the price level in the short run. if prices adjust incompletely in the short run, the curse is positively shaped