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21 Cards in this Set
- Front
- Back
National Income Accounting
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Gathering and calculating economy-wide statistics on the total output of an economy
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Gross Domestic Product (GDP)
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The market value of all final goods and services produced in a year within one country. =C + I + G + X
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Circular Flow Diagram
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A model showing the flow of output and income between households and firms
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Intermediate Goods
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A good that is used as in imput in the production of final goods and services
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Value Added
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The difference between the vlue of output and the value of the intermetdiate gooods used in production of that output.
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Inventory
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The stock of unsold goods held by a firm
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Capital Consumption Allowance
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The amount capital goods depreciate (wear out) and replaced in one year
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Indirect Business Tax
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A tax that is collected by business for a government agency.
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Gross National Product (GNP)
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GDP plus factor incomes from abroad minus payments of factor income to foreigners
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Net National Product (NNP)
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GNP - Capital Consumption Allowance
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National Income
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NNP - indirect business taxes
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Personal Income
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National Income + income received but not earned - income earned but not received
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Transfer payment
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Income transferred by the government from one citizen to another
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Disposable Income
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Personal Income - personal taxes
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Nominal GDP
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GDP in current prices (NOT compensated for Inflation)
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Real GDP
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GDP in prices from some base year (essentially GDP with inflation factored out).
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GDP Adjusted for PPP
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GDP figures adjusted such that cross national comparisons are possible. This adjustment takes varying costs of living into consideration.
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Macroeconomics
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The study of a country's economy as a whole.
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Great Depression
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A world wide economic collapse, during which GDPs fell and unemploymen rates skyrocketed.
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Centrally Planned Economy
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An economic system in which the government determins what goods and sercies are produced and the prices at which they are sold.
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Mixed Economy
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An economic system which has elements of the free market (generally private property) and central planning
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