Term
| national income & product accounts/national accounts |
|
Definition
| keep track of the flows of money between different sectors of the economy |
|
|
Term
|
Definition
| household spending on goods & services |
|
|
Term
|
Definition
| share in the ownership of a company held by a shareholder |
|
|
Term
|
Definition
| borrowing in the form of an IOU that pays interest |
|
|
Term
|
Definition
| payments by the government to individuals for which no good or service is provided in return |
|
|
Term
|
Definition
| equal to income plus government transfers minus taxes; the total amount of household income available to spend on consumption & to save |
|
|
Term
|
Definition
| disposable income minus consumer spending; disposable income that is not spent on consumption |
|
|
Term
|
Definition
| the banking, stock, & bond markets |
|
|
Term
|
Definition
| amount of funds borrowed by the government in the financial markets |
|
|
Term
|
Definition
| goods & services sold to other countries |
|
|
Term
|
Definition
| goods & services purchased from other countries |
|
|
Term
|
Definition
| stocks of goods & raw materials held to facilitate business operations |
|
|
Term
|
Definition
| spending on productive physical capital, such as machinery & construction of structures, & on changes to inventories |
|
|
Term
|
Definition
| goods & services sold to the final, or end, user |
|
|
Term
| intermediate goods & services |
|
Definition
| goods & services - bought from one firm by another firm - that are inputs for production of final goods & services |
|
|
Term
| gross domestic product/GDP |
|
Definition
| the total value of all final goods & services produced in the economy during a given year |
|
|
Term
|
Definition
| the sum of consumer spending, investment spending, government purchases of goods & services, & exports minus imports; the total spending on domestically produced final goods & services in the economy |
|
|
Term
|
Definition
| value of a producer's sales minus the value of its purchases |
|
|
Term
|
Definition
| the difference between the value of exports & the value of imports |
|
|
Term
| a country's _____ track flows of money among economic sectors |
|
Definition
|
|
Term
| households receive factor income in the form of wages, profit from ownership of _____, interest paid on bonds, & rent |
|
Definition
|
|
Term
| households also receive _____ |
|
Definition
|
|
Term
| households allocate _____ between consumer spending & private savings, funds that flow into the financial markets & finance investment spending & any government borrowing |
|
Definition
|
|
Term
| _____ are government expenditures on goods & services |
|
Definition
| government purchases of goods & services |
|
|
Term
| _____ lead to a flow of funds into the country |
|
Definition
|
|
Term
| _____ lead to a flow of funds out of the country |
|
Definition
|
|
Term
|
Definition
1. add up the value added by all firms
2. add up all spending on domestically produced final goods & services, an amount equal to aggregate spending
3. add up all factor income paid by firms |
|
|
Term
| _____ are not included in the calculation of GDP, while changes in inventories & net exports are |
|
Definition
| intermediate goods & services |
|
|
Term
| to determine actual growth in _____, we calculate real GDP using prices from some given base year |
|
Definition
|
|
Term
| _____ refers to the value of aggregate output calculated with current prices |
|
Definition
|
|
Term
| US statistics on GDP are always expressed in _____ |
|
Definition
|
|
Term
| real _____ is a measure of the average aggregate output per person |
|
Definition
|
|
Term
|
Definition
| a measure of the overall level of prices in the economy |
|
|
Term
|
Definition
| a hypothetical set of consumer purchases of goods & services |
|
|
Term
|
Definition
| measures the cost of purchasing a given market basket in a given year, where that cost is normalized so that it is equal to 100 in the selected base year |
|
|
Term
|
Definition
| the percent change per year in a price index - typically the consumer price index |
|
|
Term
|
Definition
| measures the cost of the market basket of a typical urban American family |
|
|
Term
|
Definition
| measures changes in the prices of goods purchased by producers |
|
|
Term
|
Definition
| 100 times the ratio of nominal GDP to real GDP in that year |
|
|
Term
| changes in the _____ are measured by the cost of buying a particular market basket during different years |
|
Definition
|
|
Term
| a _____ for a given year is the cost of the market basket in that year normalized so that the price index equals 100 in a selected base year |
|
Definition
|
|
Term
| the _____ is calculated as the percent change in a price index |
|
Definition
|
|
Term
| the most commonly used price index is the _____ which tracks the cost of a basket of consumer goods & services |
|
Definition
|
|
Term
| the _____ does the same for goods & services used as inputs by firms as the CPI does for consumers |
|
Definition
|
|
Term
| the _____ measures the aggregate price level as the ratio of nominal to real GDP times 100 |
|
Definition
|
|
