Term
| What are the national accts? Explain em |
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Definition
| national income and product accounts keep track of the flows of money between diff sectors of the economy |
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Term
| What is consumer spending? |
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Definition
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Term
| What is stock? How bout a bond? |
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Definition
| stock's a share in owernship of comp held by shareholder; bond's borrowing in the form of an IOU tht pays interest |
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Term
| What are private savings? |
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Definition
| = disposable income - consumer spending = disposable income that's not spent on consumption |
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Term
| What are financial mrkts? |
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Definition
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Term
| What is government borrowing? |
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Definition
| payments by the gov to individuals for which no good or service is provided in return |
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Term
| Whatre gov purchases of goods and services? |
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Definition
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Term
| What are imports/exports? |
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Definition
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Term
| What is investment spending? |
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Definition
| spending on productive physicalo capital such as machinery and construction of structures and on changes to inventories |
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Term
| What are final goods and services? |
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Definition
| a good/serv sold to final user (not included in the production of any other good) |
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Term
| What are intermediate goods and services? |
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Definition
| a good/serv purchased to be used for the production of another good or service or for further processing or resale |
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Term
| What's the GDP? (equation? Where C=Consumer spending; I=spending goods to other businesses; G=gov purchases of goods and service; X=sales to foreigners--exports; IM=spending on imports) |
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Definition
the total value of all the final goods and services produced in the economy during a given year
GDP = C + I + G + X - IM (Expenditure Method)) |
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Term
| What is aggregate spending? |
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Definition
| sum of consumer spending, investment spending, gov purchases, and exports minus imports, is the total spending on domestically produced final goods and services in the economy |
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Term
| What does "value added," mean? |
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Definition
the value that a firm adds to a product, and is equal to the diff between the price the firm sells a good for and the price it paid other firms for the intermediate good
v.a. = selling price - purchase price |
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Term
| Most economists agree that government intervention in the economy is beneficial in ______? |
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Definition
| smoothing out short-term economic fluctuations. |
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Term
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Definition
| 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 |
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Term
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Definition
| value of all final goods/services produced in the economy during a given year, calculated using the prices current in the year in which the out put is produced |
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Term
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Definition
| GDP divided by the size of the population; equivalent to avg GDP per person |
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Term
| what are the financial markets? |
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Definition
| banking, stock, and bond markets--channel private savings and foreign lending into investment spending, gov borrowing, and foreign borrowing |
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Term
| what is disposable income? |
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Definition
| = income + gov transfers - taxes = the total amount of household income available to spend on consumption and to save |
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Term
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Definition
| payments by the gov to individuals for which no good or service is provided in return |
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