Chapter 8: GDP- Measuring Total Production and Income Flashcards
Consumption
Spending by households on goods and services not including spending on your houses
Economic growth
The ability of an economy to produce increasing quantities of goods and services
Expansion
The period of the business cycle during which total production employment are increasing
Final good or service
A good or service purchased by a final user
GDP deflator
A measure of the price level calculated by dividing nominal GDP by real GDP and multiplying by 100
Government purchases
Spending my federal state and local governments on goods and services
Gross domestic product
The market value of all final goods and services produced in a country during a period of time typically one year
Gross national product
Is the value of final goods and services produced by residents in the United States, even if the production takes place outside of the United States
Inflation rate
The percentage increase in the price level from one year to the next
Intermediate good or service
A good or service that is an input into another good or service such as a tire on a truck
Investment
Spending by firms on new factories, office buildings, machinery, and additions to inventories, plus spending by households and firms on new houses
Macroeconomics
The study of that onto me as a whole, including topics such as inflation, unemployment, and economic growth
Microeconomics
The study of how households and firms make choices, how they interact in markets, And how the government attempts to influence their choice
Net exports
Exports minus imports
Nominal GDP
The value of final goods and services evaluated at current year prices
