question
GROSS DOMESTIC PRODUCT (GDP)
answer
It is the total dollar value of all final goods and services produced in our country's borders within a given time; largest accounting category
question
Consumption + Investment + Government + Net exports C+I+G+(X-M)It is the formula for the expenditure model of GDP
answer
It is the formula for the expenditure model of GDP
question
current or nominal GDP
answer
It is GDP that has not been adjusted for inflation
question
Real GDP
answer
It is GDP that has been adjusted for inflation
question
Gross National Product
answer
tIt is the market value of all goods and services produced by Americans anywhere in the world
question
GDP price deflator(definition)
answer
This price index is used to remove inflation from nominal GDP
question
(nominal GDP/GDP deflator) x 100 (Formula)
answer
It is the formula for deflating GDP/calculating real GDP
question
inflation
answer
To calculate REAL numbers, this must be removed from CURRENT numbers
question
Consumer Price Index (CPI)
answer
This price index calculates inflation as it applies to consumer goods and services
question
Producer Price Index (PPI)
answer
This price index calculate inflation as it applies to producer costs
question
national income accounting
answer
techniques used to measure the overall production of a country's economy
question
final goods
answer
goods purchased for final use(rather than for resale or manufacturing)
question
intermediate goods
answer
goods used by businesses to manufacture a final good
question
multiple counting
answer
counting the same good or service twice, artificially inflating GDP
question
income approach(definition)
answer
using incomes earned by the factors of production as the basis for calculating GDP
question
W+R+I+P(formula)
answer
basic formula for the income approach
question
durable goods
answer
a consumer good with expected life (use) of three or more years
question
nondurable goods
answer
a consumer good with expected life of less that three years
question
services
answer
work performed for someone
question
G
answer
government purchases
question
X-M
answer
net exports/foreign sector
question
depreciation
answer
or consumption of fixed capital; estimate of the amount of capital worn out or used up during the production of GDP
question
national income (NI)
answer
total income earned by resource suppliers (factors of production) for their contributions to GDP PLUS taxes in production and imports
question
personal income(PI)
answer
income available to resource suppliers (factors of production) before the payment of taxes
question
disposable income (DI)
answer
personal income MINUS personal taxes; In national income accounting, it is the smallest measure of income
question
base year
answer
year with which others are compared when using a price index
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
