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