Term
| expenditure approach to GDP |
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Definition
| calculating GDP by adding up spending on all final goods and services produced in the nation during the year |
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Term
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Definition
| calculating GDP b adding up all earnings from resources used to produce output in the nation during the year |
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Term
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Definition
| goods and services sold to final, or end, users |
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Term
| intermediate goods and services |
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Definition
| goods and services purchased by firms for additional processing and resale |
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Term
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Definition
| the mistake of including both the value of intermediate products and the value of final products in calculating gross domestic product(GDP); counting the same production more than once |
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Term
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Definition
| household purchases of final goods and services, except for new residences, which count as investment |
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Term
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Definition
| the purchase of new plants, new equipment, new buildings, and new residences, plus net additions to inventories |
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Term
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Definition
| manufactured items, used to produce goods and services; includes new plants and new equipment |
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Term
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Definition
| building new homes or dwelling places |
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Term
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Definition
| producers' stocks of finished and in-process goods |
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Term
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Definition
| spending for goods and services by all levels of government; government outlays minus transfer payments |
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Term
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Definition
| the value of a country's exports minus the value of its imports |
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Term
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Definition
| all earnings of resource suppliers in an economy during a given period, usually a year |
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Term
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Definition
| at each stage of production, the selling price of a product minus the cost of intermediate goods purchases from other firms |
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Term
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Definition
| the income households have available to spend or to save after paying taxes and receiving transfer payments |
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Term
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Definition
| taxes minus transfer payments |
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Term
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Definition
| banks and other financial institutions that facilitate the flow of funds from savers to borrowers |
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Term
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Definition
| any spending other than by households or any income other than from resource earnings; includes investment, government purchases, exports, and transfer payments |
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Term
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Definition
| any diversion of income from the domestic spending stream; includes saving, taxes and imports |
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Term
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Definition
| market transactions that go unreported either because they are illegal or because people involved want to evade taxes |
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Term
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Definition
| the value of capital stock used up to produce GDP or that becomes obsolete during the year |
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Term
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Definition
| gross domestic product minus depreciation |
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Term
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Definition
| GDP based on prices prevailing at the time of production |
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Term
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Definition
| the year with which other years are compared when constructing an index; the index equals 100 in the base year |
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Term
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Definition
| a number that shows the average price of products; changes in a price index over time show changes in the economy's average price level |
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Term
| consumer price index (CPI) |
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Definition
| a measure of inflation based on the cost of a fixed market basket of goods and services |
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Term
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Definition
| a comprehensive inflation measure of all goods and services included in the gross domestic product |
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Term
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Definition
| an inflation measure that adjusts the weights from year to year in calculating in a price index, thereby reducing the bias caused by a fixed-price weighting system |
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