National Income Measurement (Block One) Flashcards
Final (Chapter 10)
1
Q
GDP
A
Gross Domestic Product (GDP) is the total monetary value of all final goods and services produced within a country’s borders in a specific time period.
2
Q
Consumption (C)
A
Expenditure on goods and services by households.
3
Q
Investment (I)
A
Expenditure on capital goods, such as machinery and buildings, and changes in business inventories.
4
Q
Government spending (G)
A
Expenditure by government on goods and services
5
Q
Net exports (NX)
A
Exports minus imports.
6
Q
GDP deflator
A
A measure of the level of prices of all new, domestically produced, final goods and services in an economy.
7
Q
Meaning, intuition
A
It reflects changes in the overall price level of the economy over time.
