FINALS Flashcards
deals with the aggregate economy.
macroeconomics
It analyzes the total of how everyone in the economy bought and sold, earned and spent, produced and sold, conceptualized and implemented projects, trained and worked, and saved and invest. It cannot be felt directly. They can only be observed if one is in the direct path of economic change.
macroeconomics
It monitors the overall health of the economy
core agenda of macroeconomics
means that the economic standing of a country is expanding from the previous period.
growth
reflects the capacity of the population to afford the various products and services in the economy.
prices
matches the economic growth by providing people with jobs that will allow them to satisfy their needs and wants through the income that they will receive.
employment
The better way to measure the aggregate or total economic expansion is through
gross domestic product
it is the value of the goods or services produced by the country in a specified period of time.
gross domestic product
it may be used to identify the total income and total spending of the whole economy.
GDP (Gross Domestic Product)
- It is the summation of all the final goods and services produced within a country for a specific period.
Gross Domestic Product
means all the market value of products sold and services rendered within a specific period
Summation of all the final goods and services
indicates completeness, so wages spent by households for services rendered like labor are included.
summation
mean that the value of a product as raw material and as an intermediate are not measured because this will double-count the value of the goods.
final goods
means goods that are currently made and sold at that particular period in a specific year
produced
occurs when households spend their income to buy goods and services.
consumption
are those goods that one gets or consumes without physically holding on to them, like getting a massage.
services
refers to goods that one buys for future use like machinery and equipment, which are utilized to produce other goods and services.
investment
specify the value of the spending transactions of the state after collecting taxes from the households and firms.
Government Expenditure
refers to the difference between imports and exports.
net exports
