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Flashcards in Chapter 25 Deck (6)
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1
Q

Gross domestic product (GDP)

A

The total market value of all final goods and services produced in an economy in a one year period

2
Q

Consumption

A

Spending by households on goods and services

3
Q

Investment

A

Spending for the purpose of additional production

4
Q

Government spending

A

Goods and services that government buys

5
Q

Transfer payments

A

Payments to individuals that don’t involve production by those individuals

6
Q

Net exports

A

Spending on goods and services produced in the US that’s foreigners buy (exports) minus goods and services produced abroad that US citizens buy (imports)