• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/13

Click to flip

13 Cards in this Set

  • Front
  • Back
Components of GDP
Personal Consumption, gross domestic Investment, Government Purchases, net exports
GDP Equation
Expenditure Method
C+I+G+NX
GDP Value Added Method
add the market value that each firm adds to a good or service
Division of Income Method
measure GDP in terms of total expenditure or as total income received by households. included are: wages, interest, rent, profits, taxes, depreciation, etc.
Shortcomings of GDP as a measure of total production
Underground economy, household production (stay at home moms),
Nominal vs Real GDP
Nominal GDP - GDP at current valuation of Dollar.
Real GDP - calculating GDP with base year. using base year prices to calculate current prices. lets us see real growth
Calculate Real GDP
Multiply Current year AMOUNT by Base year PRICE
Gross National Product
Value of final goods and services produced by residents of US, even if produced outside US.
Net National Product
GNP - Depreciation = NNP
National Income
National Income will always be smaller than GDP, because of sales tax paid on expenditures.
GDP Deflator
Nominal GDP/Real GDP x 100
a measure of the Price Level.
Price Level
measures the avg prices of goods an services in the economy
Disposable Personal Income
DPI=Personal Income - Personal Tax Payments
it is the best measure of income that households actually have to spend