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19 Cards in this Set
- Front
- Back
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What are the national income and product accounts (or national accounts)?
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They keep track of the flows of money between different sectors of the economy.
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What is comsumer spending?
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Household spending on goods and services.
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What is a stock?
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It is a share in the ownership of a company held by a shareholder.
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What is a bond?
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It is borrowing in the form of an IOU that pays interest.
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What are government transfers?
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They are payments by the government to individuals for which no good or service is provided in return.
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What is disposable income?
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It is equal to income plus government transfers minus taxes. It is the total amount of household income avaliable to spend on consumption and to save.
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What is private savings?
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This is equal to disposable income minus consumer spending. It is disposable income that is not spent on consumption.
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What are finanical markets?
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They are the banking, stock, and bond markets which channel private savings and foreign lending into investment spening, government borrowing, and foreign borrowing.
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What is government borrowing?
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This is the amount of funds borrowed by the government in the finacial markets.
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What are government purchases of goods and services?
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They are government expenditures on goods and services.
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What are exports?
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They are goods and services sold to residents of other countries.
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What are imports?
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They are goods and services purchased from residents of other countries.
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What is investment spending?
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It is spening on productive physical capital, such as machinery and construction of structures, and on changes to investments.
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What are final goods and services?
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They are goods and services sold to the final, or end user.
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What are intermediate goods?
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They are goods and services bought from one firm by another firm, that are inputs for production of final goods and services.
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What is gross domestic product (GDP)?
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It it the total value of all final goods and services produced in the economy during a given year.
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What is aggregate spending?
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It is the total spending on domestically produced final goods and service in the economy, which are the sum of consumer spending, investment spending, governemnt purchases, and exports minus imports,
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What is the value added?
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The value added of a producer is the value of its sales minus the value of its purchases on inputs.
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What are net exports?
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They are the difference between the value of exports and the value of imports.
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