lesson 7 - gdp

Question 1

GDP

Answer 1

market value of final production of goods and services within borders of a country within time period

Question 2

expenditure approach

Answer 2

y = consumption + investment + gov spending + exports - imports

Question 3

income approach

Answer 3

adding up all income earned within borders
wages + rents + interest + profit

Question 4

value added aproach

Answer 4

adding up value added from each production stage

Question 5

final goods and services

Answer 5

the goods/services purchased by consumers/businesses/governments/foreign
final use

Question 6

intermediate goods

Answer 6

goods used in the production of a final products –> i buy cotton to make the final good of a shirt

Question 7

consumption (c)

Answer 7

spending by households on final goods EXLUDES NEW HOUSING

Question 8

investment (I)

Answer 8

spending firms do to produce goods/services

Question 9

gov spending (g)

Answer 9

spending by gov entities (NO TRANSFER PAYMENTS!!)

Question 10

transfer payment

Answer 10

any payment by a gov to a household that is not in exchange for a good or service

not included in gdp

Question 11

exports (X)

Answer 11

goods produced in one country sold to foreign one

Question 12

imports (m)

Answer 12

goods produced in a foreign country sold to the country

Question 13

net exports (X-M)

Answer 13

exports - imports