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15 Cards in this Set
- Front
- Back
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Nominal gross domestic product |
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Intermediate goods |
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Final goods and services |
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Consumption |
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Gross investment |
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Government purchases |
All final goods purchased by federal, state, and local govts (ex: tanks, police cars, fire engine, office supplies ect..) |
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Imports (M) |
goods and services or resources produced abroad (overseas) and sold domestically Not included in GDP because they were made somewhere else |
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Exports (X) |
Goods and services or resources produced domestically and sold abroad (over seas) |
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Net exports (NX) |
The difference between exports and imports NX = X (exports)- M (Imports) |
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Nominal GDP equation |
GDP = C (Consumption) + I (Gross investment) + G (govt purchases) + NX (Net imports) GDP = C+ I + G + NX |
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Intermediate goods |
Intermediate goods are NOT included in GDP (p included in final p of product) Ie McD's makes purchase from supplier and prices of these transactions are inn the prices they charge customers for these items, burgers fries ect |
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Consumer durables |
Goods that have an average useful life of 3 years Ie: appliances, cars, furniture |
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Consumer non durable |
Goods that have an average useful life of less than 3 years Ie: food, clothing |
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Services |
Outputs, often intangible of the direct activities of another person Ie: haircuts, medical, legal services, education, entertainment |
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Largest components of GDP |
Consumption and government purchases |
