Gross Domestic Product Flashcards
Monetary measure of the market value of all final goods and services produced in a period of time is?
Gross Domestic Product (GDP)
__________ GDP estimates are commonly used for economic performance of a whole country to make international comparisons.
Nominal
GDP can be determined in what three ways?
Production approach
Income approach
Expenditure approach
The ___________ approach works on the principle that all products must be bought, therefore the value must be equal to people’s total expenditures.
Expenditure
The expenditure approach is to calculate the _____ of the final uses of goods and services measured in purchasers prices.
Sum
If a good is produced and unsold, the _________ bought that good from themselves.
Producer
What are the four groups of buyers in the economy?
Households
Businesses
Government
Foreign
The four buyers in the economy are considered GDP ___________.
Drivers
How do you calculate GDP (Equation)?
GDP= Consumption (C) + Investment (I) + Government Spending (G) + (Exports (X) - Imports (M))
What is the largest GDP driver in the economy consisting of private expenditures?
Consumption (C)
What includes business investment in equipment but not exchanges of assets? Spending by households on new houses also included.
Investment (I)
What is the sum of government expenditures that include public servant salaries, weapons for military, and doesn’t include social security and unemployment?
Government Spending (G)
What includes goods and services for other countries consumption?
Exports (X)
What is minused since they are included in G, I, and C and is used to avoid counting foreign product as domestic?
Imports (M)
What are used by businesses to produce other goods and services within the year?
Intermediate goods
Who calculates the GDP in the US?
The Bureau of Economic Analysis
When the GDP falls for two quarters or 6 months the economy is said to be in a what?
Recession
What measures the total dollar value of all the production of goods and services in the economy?
GDP (Gross Domestic Product)
Using a basis of GDP per capital at ___________ __________ _______ (PPP) is more useful in comparing differences in living standards.
Purchasing Power Parity
What approach is to calculate the sum of the final uses of goods and services measured in purchasers prices?
The expenditure approach
GDP count the uses of final goods and services rather than ____________ goods.
Intermediate
How long is 1 quarter?
3 months
Non durable goods last how long?
Less than a year
Durable goods last how long?
More than a year
