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22 Cards in this Set

  • Front
  • Back
national income accounting
the techniques used to measure the overall production of the economy and other related variables for the nation as a whole
gross domestic product (GDP)
the dollar value of all final goods and services produced within the borders of a given country during a given period of time
intermediate goods
goods and services that are purchased for resale or for further processing or manufacturing
final goods
consumption goods, capital goods, and services that are purchased by their final users
multiple counting
wrongly including the value of intermediate goods in the GDP
value added
the market value of a firm's output less the value of the inputs the firm has bought from others
expenditures approach
the sum of all the money spent in buying it; output approach
income approach
the income derived or created from producing it; earnings/allocations approach
personal consumption expenditures
all expenditures by households on durable consumer goods, nondurable goods, and consumer expenditures for services
gross private domestic investment
expenditures for newly produced capital goods and for additions to inventories
net private domestic investment
gross private domestic investment less consumption of fixed capital
government purchases
government consumption of expenditures and gross investment
net exports
exports minus imports
taxes on production and imports
a national income accounting category that includes such taxes which firms treat as costs of producing a product and pass on to buyers by charging a higher price
national income
the total of all sources of private income plus government revenue from taxes on production and imports
consumption of fixed capital
the huge depreciation charge made each year against private and publicly owned capital each year
net domestic product
gross domestic product less the part of the year's output that is needed to replace the capital goods worn out in producing the output
personal income
includes all income received, whether earned or unearned
disposable income
personal income less personal taxes
nominal GDP
the GDP measured in terms of the price level at the time of the measurement (unadjusted for inflation)
real GDP
GDP that has been deflated or inflated to reflect changes in the price level
price index
a measure of the price of a market