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22 Cards in this Set
- Front
- Back
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Gross Domestic Product(GDP)
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The total market value of all final goods and services produced annually within a country's borders.
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Final Good
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A good in the hands of its final user.
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Intermediate Good
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A good that is an input in the production of a final good
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Double Counting
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Counting a good more than once when computing GDP
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Value Added
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The dollar value contributed to a final good at each stage of production.
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Transfer Payment
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A payment to a person that is not made in return for goods and services currently supplied.
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Consumption
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The sum of spending on durable goods, nondurable goods, and services.
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Investment
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The sum of all purchases of newly produced capital goods, changes in business invetories, and purchases of new residential housing.
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Inventory Investment
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Changes in the stock of unsold goods.
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Fixed Investment
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Business purchases of capital good, such as machinery and factories, and purchases of new residential housing.
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Goverment Purchases
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Federal, state, and local government purchases of goods and services and gross investment in highways, bridges, and so on.
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Government Transfer Payments
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Payments to persons that are not made in return for goods and services currently supplied.
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Imports
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Total domestic (U.S.) spending on foreign goods.
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Exports
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Total foreign spending on domestic (U.S.) goods.
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Net Exports
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Exports minus imports
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National Income
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Total income earned by U.S. citizens and businesses, no matter where they reside or are located.
Compensation of employees + Proproetors' income + Corporate profits + Rental income of persons + Net interest |
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Capital Consumption Allowance (Depreciation)
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The estimated amount of capital goods used up in production through natural wear, obsolesence, and accidental destruction.
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Net Domestic Product
(NDP) |
GDP minus the capital consumptoon allowance.
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Personal Income
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The amount of income that individuals actually receive. It is equal to national income minus undestributed corporate profits, social insurance taxes, and corporate profits taxes, plus transfer payments.
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Disposable Income
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The portion of personal income that can be used for consumption or saveing. It is equal to personal income minus personal taxes (especially income taxes).
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Real GDP
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The value of the entire output produced annually within a country's borders, adjusted for price changes.
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Business Cycle
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Recurrent swings (up and down) in Real GDP.
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