CH 8

Question 1

The market value of all final goods and services produces in a country during a period of time, typically one year

Answer 1

Gross Domestic Product

Question 2

A good or service purchased by a last user

Answer 2

Final good or service

Question 3

GDP Equation (Expenditure Method)

Answer 3

Y = C + I + G + NX

Question 4

GDP/ population

Answer 4

GDP per capita

Question 5

The value of final goods and services evaluated at current-year prices

Answer 5

Nominal GDP

Question 6

The value of final goods and services evaluated at base-year prices

Answer 6

Real GDP

Question 7

A measure of the price level, calculated by dividing nominal GDP by real GDP and multiplying by 100

Answer 7

GDP Deflator

Question 8

Production performed by citizens of a nation, including overseas production

Answer 8

Gross National Product

Question 9

GDP minus the consumption of fixed capital; i.e. GDP- depreciation

Answer 9

National income

Question 10

Income received by households; includes transfer payments, but excludes firms’ retained earnings

Answer 10

Personal Income

Question 11

Personal income minus personal tax payments; this measures the amount that households are able to spend or save

Answer 11

Disposable personal income