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30 Cards in this Set
- Front
- Back
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Products that would be used in calculating GDP include
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cars manufactured in Tennessee at a factory owned by a Japanese automobile company
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An example of a durable good would be
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a used car
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Compared with the expenditure approach to calculating GDP, the income approach is
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more accurate
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GNP minus the cost of depreciation of capital equipment is
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net national product
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An accurate statement about the Great Depression would be that
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it was the most severe economic downturn in the history of industrial capitalism
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The agency that maintains the National Income and Product Accounts (NIPA) is
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the U.S. Department of Commerce
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An example of capital deepening would be
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paying for an employee to take college courses
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The calculation of GDP would include
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the income of a high school English teacher
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An example of a nondurable good is
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a paperback book
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Compared with the income approach to calculating GDP, the expenditure approach is
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more practical
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GDP expressed in constant, or unchanging, prices is called
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real GDP
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The amount of money a person has left of his or her income after taxes is called
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disposable personal income
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The lowest point in an economic contraction is called
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a trough
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An accurate statement about the Great Depression would be that
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it ended largely because of an increase in defense spending related to World War II
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a system that collects macroeconomics statistics on production, income, investment and savings
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national income accounting
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the dollar value of all final goods and services produced within a country's borders in a given year
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gross domestic product
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the total amount of goods and services in the economy available at all possible price levels
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aggregate supply
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the loss of the value of capital equipment that results from normal wear and tear
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depreciation
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a decline in GDP combined with a rise in the price level
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stagflation
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a prolonged economic contraction
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recession
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the lowest point in an economic contraction, when real GDP stops falling
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trough
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an increase in effciency gained by producing more output without using more inputs
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technological progress
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a system that collects macroeconomic statistics on production, income, investment, and savings
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national income accounting
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the annual income earned by U.S. owned firms and U.S. residents
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gross national product
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the amount of goods and services in the economy that will be purchased at all possible price levels
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aggregate demand
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the loss of the value of capital equipment that results from normal wear and tear
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depreciation
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a period of economic decline marked by falling real GDP
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contraction
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a decline in GDP combined with a rise in the price level
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stagflation
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key economic variables that economists use to predict a new phase of a business cycle
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leading indicators
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an increase in efficiency gained by producing more output without using more inputs
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technological progress
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