Unit 2 Vocabulary Flashcards

1
Q

keep track of the flows of money among different sectors of the economy

A

national income and product accounts or national accounts

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2
Q

a person or group of people who share income

A

household

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3
Q

an organization that produces goods and services for sale

A

firm

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4
Q

goods and services are bought and sold here

A

product markets

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5
Q

household spending on goods and services

A

consumer spending

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6
Q

where resources, especially capital and labor, are bought and sold

A

factor markets

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7
Q

total expenditures on goods and services by federal, state, and local governments

A

government spending

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8
Q

required payments to the government

A

taxes

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9
Q

the total amount the government receives from taxes

A

tax revenue

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10
Q

equal to income plus government transfers minus taxes, is the total amount of household income available to spend on consumption

A

disposable income

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11
Q

payments that the government makes to individuals without expecting a good or service in return

A

government transfers

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12
Q

equal to disposable income minus consumer spending, is a household’s disposable income that is not spent on consumption

A

private savings

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13
Q

channel private savings into investment spending and government borrowing

A

financial markets

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14
Q

the amount of funds borrowed by the government in the financial markets

A

government borrowing

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15
Q

spending on new productive physical capital, such as machinery and structures, and on changes in inventories

A

investment spending

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16
Q

stocks of goods and raw materials held to facilitate business operations

A

inventories

17
Q

goods and services sold to other countries

18
Q

goods and services purchased from other countries

19
Q

the total value of all final goods and services produced in the economy during a given year

20
Q

adds up aggregate spending on domestically produced final goods and services in the economy-the sum of consumer spending, investment spending, government purchases of goods and services, and exports minus imports

A

expenditure approach

21
Q

adds up the total factor income earned by households from firms in the economy, including rent, wages, interest, and profit

A

income approach

22
Q

surveys firms and adds up their contributions to the value of the final goods and services

A

value added approach

23
Q

goods and services sold to the final, or end, user

A

final goods and services

24
Q

goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services

A

intermediate goods and services

25
the difference between the value of exports and imports (X - M)
net exports
26
added by a producer is the value of its sales minus the value of its purchases of inputs
value added
27
the total quantity of final goods and services produced within an economy
aggregate output
28
the total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year in order to remove the effects of price changes
Real GDP
29
the total value of all final goods and services produced in the economy during a given year, calculated with the prices current in the year in which the output is produced
nominal GDP