chapter 6.1 part 3 Flashcards
When is the ‘final’ estimate the BEA publishes?
One month after the three months, then one month after that, and afterwards the ‘final’ estimate is one month after.
What does the BEA do in July?
Roughly updated estimates for the previous calendar year.
What does the BEA do once every 5 years after processing all the results of the latest detailed five-year business census?
It revises all past GDP estimates according to the newest methods and data going back all the way to 1929.
What is the gap between exports and imports called?
Trade balance.
How was the trade deficit in the late 1990s and the mid 2000s?
It grew quite large.
How have exports and imports been in recent decades?
They have risen substantially even after declines in 2008 and 2009.
What happens when exports and imports are balanced overall?
Overall foreign trade might still have powerful effects on industries and workers.
GDP measured by what is produced has 5 categories, what are they?
Durable goods, non-durable goods, services, structures, and changes in inventories.
GDP measured by what is produced is compared to GDP measured by what is demanded?
They are the same value.
Why does GDP measured by what is demanded the same as GDP measured by what is produced?
Since every market transaction must have both a buyer and a seller.
What is the last component of aggregate supply and what is its percentage from figure 6.6?
Change in inventories and less than 1% of GDP.
What do service industries include?
Healthcare, education, legal, and financial services.
How long has it been since most of the US’s economy has been involved in making solid objects?
Decades.
What are the most common jobs in a modern economy?
A worker looking at pieces of paper or a computer screen, meeting with co-workers, customers, or suppliers; or making phone calls.
