Macro Quiz 2 Flashcards
National income and product accounts
an accounting of consumer spending, sales of producers, business investment spending, and other flows of money between different sectors of the economy; also referred to as National accounts. Calculated by the Bureau of Economic Analysis.
National accounts
another name for National Income and Product Accounts.
Household
a person or a group of people who share income.
Firm
an organization that produces goods and services for sale.
Product markets
where goods and services are bought and sold.
Factor markets
where resources, especially capital and labor, are bought and sold.
Consumer spending
household spending on goods and services from domestic and foreign firms.
Stock
a share in the ownership of a company held by a shareholder.
Bond
loan in the form of an IOU that pays interest.
Government transfers
payments by the government to individuals for which no good or service is provided in return.
Disposable income
income plus government transfers minus taxes; the total amount of household income available to spend on consumption and saving.
Private savings
disposable income minus consumer spending; disposable income that is not spent on consumption but rather goes into financial markets.
Financial markets
the banking, stock and bond markets, which channel private savings and foreign lending into investment spending, government borrowing, and foreign borrowing.
Government borrowing
the amount of funds borrowed by the government in financial markets to buy goods and services.
Government purchases of goods and services
total purchases by federal, state, and local governments on goods and services.
Exports
goods and services sold to other countries.
Imports
goods and services purchased from other countries.
Inventories
stocks of goods and raw materials held to satisfy future sales.
Investment spending
spending on productive physical capital such as machinery and construction of structures, and on changes to inventories.
Final goods and services
goods and services sold to the final, or end, user.
