Ch 5 - National-Income Accounting Flashcards Preview

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Flashcards in Ch 5 - National-Income Accounting Deck (24)
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0
Q

gross domestic product (GDP)

A

the total market value of all final goods and services produced within a nation’s borders in a given time period

1
Q

national-income accounting

A

the measurement of aggregate economic activity, particularly national income and its components

2
Q

GDP per capita

A

total GDP divided by total population; average GDP

3
Q

intermediate goods

A

goods or services purchased for use as input in the production of final goods or in services

4
Q

value added

A

the increase in the market value of a product that takes place at each stage of the production process

5
Q

nominal GDP

A

the value of final output produced in a given period, measured in the prices of that period (current prices)

6
Q

real GDP

A

the value of final output produced in a given period, adjusted for changing prices

7
Q

base year

A

the year used for comparative analysis; the basis for indexing price changes

8
Q

inflation

A

an increase in the average level of prices of goods and services

9
Q

production possibilities

A

the alternative combinations of final goods and services that could be produced in a given time period with all available resources and technology

10
Q

depreciation

A

the consumption of capital in the production process; the wearing out of plant and equipment

11
Q

net domestic product (NDP)

A

GDP less depreciation

12
Q

investment

A

expenditures on (production of) new plant, equipment, and structures (capital) in a given time period, plus changes in business inventories

13
Q

gross investment

A

total investment expenditure in a given time period

14
Q

net investment

A

gross investment less depreciation

15
Q

exports

A

goods and services sold to international buyers

16
Q

imports

A

goods and services purchased from international sources

17
Q

net exports

A

the value of exports minus the value of imports

18
Q

national income (NI)

A

total income earned by current factors of production; GDP less depreciation, plus net foreign factor income

19
Q

net foreign factor income

A

production employed in other nations creates an inflow of income for U.S. households

20
Q

personal income (PI)

A

income received by households before payment of personal taxes

21
Q

disposable income (DI)

A

after-tax income of households; personal income less personal tax

22
Q

saving

A

the part of disposable income not spent on current consumption; disposable income less consumption

23
Q

the stock of capital

A

the total collection of plant and equipment; won’t grow unless gross investment exceeds depreciation