Ch 13 Flashcards
GNP = ?
c + I + G + CA
CA= ?
EX - IM
National income account = ?
National output account
C = ?
Consumptions of the final sale by goods by firmas and households
What does C not account for?
Consumption does not account for second hand or firm purchases for production.
NNP?
Net national product
NNP = ?
GNP + depreciation of capital over time
National income = ?
GNP - Depreciation + unilateral transfers
GDP ? GDP= ?
Gross national product
GDP = GNP - EX and IM
I = ?
Investment
Y ?
National income identity
Y = ?
C + I + G+ EX - IM
Selling = ?
Export
Buying = ?
Import
Current account (CA) deficit
EX < IM
Current account (CA) surplus
EX > IM
When there is a CA deficit what will the country do? and what does this lead to?
The country will borrow which increases its debts
S ?
National savings
S = ?
Y - C - G
S = ? in a closed economy
I
When the country has a CA surpuls, what does this mean?
The country have savings which a forigen country can borrow. This deal is an investment for the country.
The balance of payments accounts what?
The records of the transactions between forigen and domestic country aka. the CA.
What type of transaktion are recorder in what account?
Purchase and sales -> financial account
Transfer of wealth -> Capital account
Financial account balance = ?
Current account balance + capital account balance
FA ?
Financial account
FA = ?
CA + KA
KA ?
Capital account
OSB ?
The official settlements balance aka. the balance of payments
OSB = ?
NFRA - FA
Another version/equation of the balace of payments?
NX + BPI + BSI + KA = NRFA + OSB
NRFA ?
Nonreserv financial account
