Chapter 25 Flashcards
1
Q
Gross domestic product (GDP)
A
The total market value of all final goods and services produced in an economy in a one year period
2
Q
Consumption
A
Spending by households on goods and services
3
Q
Investment
A
Spending for the purpose of additional production
4
Q
Government spending
A
Goods and services that government buys
5
Q
Transfer payments
A
Payments to individuals that don’t involve production by those individuals
6
Q
Net exports
A
Spending on goods and services produced in the US that’s foreigners buy (exports) minus goods and services produced abroad that US citizens buy (imports)
