Chapter 23: Measuring A Nation's Income

Question 1

Gross domestic product (gdp)

Answer 1

The market value of all final goods and services produced within a country in a given period of time

Question 2

Consumption

Answer 2

Spending by households on goods and services, with the exception of purchases of new housing

Question 3

Investment

Answer 3

Spending on capital equipment, inventories, and structures, including household purchases of new housing

Question 4

Government purchases

Answer 4

Spending goods and services by local, state, and federal governments

Question 5

Net exports

Answer 5

Spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)

Question 6

Nominal gdp

Answer 6

The production of goods and services valued at current prices

Question 7

Real gdp

Answer 7

The production of goods and services valued at constant prices

Question 8

Gdp deflator

Answer 8

A measure of the price level calculated as the ratio of nominal gdp to real gdp times 100

Question 9

Macroeconomics

Answer 9

The study of economy-wide phenomena, including inflation, unemployment, and economic growth