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36 Cards in this Set

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GDP
the market value of the final goods and services produced in a country during a given period
final goods or services
goods or services consumed by the ultimate user; because they are the end products of the production process, they are counted as part of GDP
intermediate goods or services
goods or services used up in the production of final goods and services and therefore not counted as part of GDP
capital good
a long-lived good, which is itself produced and used to produce other goods and services
value added
for any firm, the market value of its product or service minus the cost of inputs purchased from other firms
consumption expenditure
spending by households on goods and services, such as food, clothing, and entertainment
investment
spending by firms on final goods and services, primarily capital goods and housing
government purchases
purchases by federal, state, and local governments of final goods and services
transfer payments
payments made by the government in return for which no current goods or services are recieved
net exports
exports minus imports
real GDP
a measure of GDP in which the quantities produced are valued at the prices in a base year rather than at current prices; measures the actual physical volume of production
nominal GDP
a measure of GDP in which the quantities produced are valued at current-year prices; measures the current dollar value of production
labor force
the total number of employed and unemployed people in the economy
unemployment rate
the number of unemployed people divided by the labor force
participation rate
the percentage of the working-age population in the labor force
unemployment spell
a period during which an individual is continuously unemployed
duration
the length of an unemployment spell
discouraged workers
people who say they would like to have a job but have not made an effort to find one in the past four weeks
consumption expenditure are subdivided into three subcategories:
1)consumer durables
2)consumer nondurables
3)services
investment is divided into three subcategories:
1)business fixed investment
2)residential investment
3)inventory investment
formula for GDP
Y = C + I + G + NX
GDP can be expressed equally well as:
1)the market value of production
2)total expenditure
3)toal income
three cateegories of people over the age of 16:
1)employed
2)unemployed
3)out of the labor force
GDP is the market value of the __________ goods and services produced in a country during a given period.
final
__________ goods and services are consumed by the ultimate user.
final
__________ goods and services are used up in the production of final goods and services.
intermediate
Spending by firms on final goods and services such as capital goods and housing is __________.
investment
__________ include purchases by federal, state, and local governments of final goods and services, but exclude transfer payment.
goverment purchases
"GDP=Consumption+Investment+Government Purchases+__________" is the expenditure method for measuring GDP.
Net Exports
__________ is a measure of GDP using the prices in a base year rather than current prices.
real GDP
An economy produces cars only. In 2002, production was 1,000 cars at a price of $10,000 each. In 2003, production was 1,050 cars at a price of $11,000 each. Real GDP in 2003 using 2002 as the base year equals __________.
$10.5 million
Labor force is the total number of employed and __________ people in the economy.
unemployed
To be considered employed, you must have a full-time job. True/False?
false
If the number of unemployed is 100,000, the number of employed is $1 million, and the total population is 5 million, the unemployment rate is __________.
9%
If the number of unemployed is 100,000, the number of employed is $1.5 million, the working-age population is 2 million, and the total population is 5 million, the participation rate is __________.
80%
Discouraged workers are included in the labor force. True/False?
false