• 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

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/32

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

32 Cards in this Set

  • Front
  • Back
National Income and product accounts

or National Accounts
Keep track of the flows of money between different sectors of the economy
Consumer Spending
is household spending on goods and services
Stock
is a share in the ownership of a company held by a stockholder
Bond
is borrowing in the form of an IOU that pays interest
Government Transfers
are payments by the government to individuals for which no good or service is provided in return
Disposable income
equal to income plus government transfers minus taxes, is the total amount of household income available to spend on consumption and to save
Private Savings
equal to disposable income minus consumer spending, is disposable income that is not spent on consumption
Financial Markets
are he banking, stock, and bond markets, which channel private savings and foreign lending into investment spending, government borrowing, and foreign borrowing
Government Borrowing
is the amount of funds borrowed by the government in the financial markets
Government purchases of goods and services
are total expenditures on goods and services by federal, state, and local governments
Exports
Goods and services sold to other countries
Imports
Goods and services sold from other countries
Inventories
are stocks of goods and raw materials held to facilitate business operations
Investment Spending
is spending on productive physical capital, such as machinery and construction of structures, and on changes to inventories
Final Goods and Services
are goods and services sold to the final, or end, user
Intermediate Goods and Services
are goods and services - bought from one firm by another firm - that are inputs for production of final goods and services
Gross Domestic Product, GDP
is the total value of all final goods and services produced in the economy during a given year
Aggregate Spending
the sum of consumer spending, investment spending, government purchases of goods and services, and exports minus imports, is the total spending on domestically produced final goods and services in the economy
Value Added
(of a producer) is the value of its sales minus the value of its purchases of inputs
Net Exports
are the difference between the value of exports and the value of imports
Aggregate Output
is the economy's total quantity of output of final goods and services
Real GDP
is the total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year
Nominal GDP
is the value of all final goods and services produced in the economy during a given year, calculated using the prices current in the year in which the output is produced
Chained Dollars
is a method of calculating changes in real GDP using the average between the growth rate calculated using an early base year and the growth rate calculated using a late base year
GDP per Capita
is GDP divided by the size of the population; it is equivalent to the average GDP per person
Aggregate Price Level
is a measure of the overall level of prices in the economy
Market Basket
is a hypothetical set of consumer purchases of goods and services
Price Index
measures the cost of purchasing a given market basket in a given year, where that cost is normalized so that it is equal to 100 in the selected base year
Inflation Rate
is the percent change per year in a price index - typically the consumer price index
Consumer Price Index, or CPI
measures the cost of the market basket of a typical urban American family
Producer Price Index, or PPI
measures changes in the prices of goods purchased by producers
GDP deflator
for a given year, is 100 times the ratio of nominal GDP to real GDP in that year