Term
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Definition
| Expenditure Approach and Resource Cost-income Approach |
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Term
| What goes into the Expenditure Approach? |
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Definition
| Personal consumption expenditures, gross private domestic investment, government consumption and gross investment, and net exports of goods and services |
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Term
| What goes into the Resource Cost-Income Approach? |
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Definition
| aggregate income, non-income cost items, and net income of foreigners |
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|
Term
| def. of expenditure approach |
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Definition
| the dollar flow of expenditures on final goods |
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Term
| def. of Resource Cost-Income Approach |
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Definition
| the dollar flow of income and indirect cost from final goods |
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|
Term
| formula for inflation rate |
|
Definition
| {[(This year's PI) - (Last year's PI)]/last year's PI}{100} |
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Term
|
Definition
| (nominal GDP)[(GDP Deflator of base year)/(GDP of year)] |
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|
Term
| Problems with using the GDP to gauge prosperity |
|
Definition
| non-market production, underground economy, leisure and human costs, quality variation and introduction of new goods, harmful side effects and economic bads |
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