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16 Cards in this Set
- Front
- Back
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BEA
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Bureau of Economic Analysis
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What economist established the methodology for Keynesian economics in the 1930s?
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Simon Kuznets
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NIPA
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National Income and Product Accounts
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Inventory
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Stock of unsold goods
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Unplanned inventory
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Changes reflect results of unexpected sales variations
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Planned inventory
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Changes reflect management's decision to add or reduce stock
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2 ways of measuring GDP
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-Expenditures on final goods
-Income received for producing final goods |
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4 components of GDP
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C: Personal consumption expenditures
I:Gross private domestic investment G: Government purchase of goods and services X: Net exports |
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Who produces GDP?
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-Business Firms: 84%
-Government: 11% -Households: 5% |
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What payments are made in GDP?
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-Wages and benefits payed to workers
-Proprietor's income -Rents -Interest -Corporate profits -Indirect business taxes -Net factor income from abroad -Capital consumption allowance |
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3 examples of benefits payed to workers
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-Insurance
-Social security -Retirement contributions |
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Rent
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Income earned from selling use of real estate
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Indirect business taxes
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Taxes collected by businesses and turned over to government
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Net factor income from abroad
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Income that foreigners earn producing goods within the borders of a country
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Capital consumption allowance
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Depreciation
Value of capital goods used up in production |
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GDP vs. GNP
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-GDP (Gross Domestic Product): value of goods and services produced within country
-GNP (Gross National Product): value of goods and services produced by citizens of country |
