Term
National Income and Product Accounts
{National Accounts) |
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Definition
| These accounts, under the Bureau of Economic Analysis, keep track of the flows of money between different sectors of the economy. |
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Term
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Definition
| This diagram is a simplified representation of the macroeconomy. It shows the flows of money, goods and services, and factors of production through the economy. It allows us to visualize the key concepts behind the national accounts. |
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Definition
| A person or group of people who share income. |
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Definition
| An organization that produces goods and services for sale. |
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Definition
| Markets where goods and services are bought an sold. |
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Definition
| Markets where resources, especially capital and labor, are bought and sold. |
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Definition
| Household spending on goods and services |
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Definition
| Shares in the ownership of a company held by a shareholder. |
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Definition
| Loans to firms in the form of an IOU that pays interest. |
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Definition
| Payments that the government makes to individuals without expecting a good or service. (Ex. unemployment insurance payments) |
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Definition
| Equal to income plus government transfers minus taxes, the total amount of household income available to spen on consumption and to save. |
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Definition
| Equals to disposable income minus the consumer spending, the disposable income that is not spent on consumption. |
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Definition
| The banking, stock, and bond markets, which channel private savings and foreign spending, government borrowing, and foreign borrowing. |
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Definition
| The amount of funds borrowed by the government in the financial markets. |
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Term
| Government Purchases of Goods and Services |
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Definition
| The total expenditures on goods and services by federal, state, and local governments. |
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Definition
| Goods and services sold to other countries. |
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Definition
| Goods and services purchased from other countries. |
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Definition
| Stocks of goods and raw materials held to facilitate business operations. |
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Definition
| Spending on new productive physical capital, such as machinery and structures, and on changes in inventories. |
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Definition
| Goods and services sold to final, or end, user. |
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Term
| Intermediate Goods and Services |
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Definition
| Goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services. |
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Term
Gross Domestic Product
GDP |
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Definition
| The total value of all final goods and services produces in the economy during a given year. |
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Term
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Definition
| The total spending on domestically produced final goods and services in the economy - is the sum of consumer spending(C), investment spending (I), government purchases of goods and services (G), and exports minus imports (net exports = X - IM = NX). |
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Term
GDP = C + I + G + X − IM
or
GDP = C + I + G + NX |
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Definition
C = Consumer Spending
I = Investment Spending
G = government purchases of goods and services
X = Exports
IM = Imports
NX = Net Exports |
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Term
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Definition
| The differences between the value of exports and the value of imports (X - IM). |
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Term
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Definition
| Domestically produced final goods and services, including capita goods, new construction of structures, and changes to inventories. |
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Term
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Definition
- Intermediate goods and services
- Inputs
- Used goods
- Financial assets such as stocks and bonds
- Foreign-produced goods and services |
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Term
| Difference between Investment Goods and Input? |
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Definition
| An input, like steel, is used up in production. An investment good, like a metal-stamping machine, is not. |
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Term
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Definition
| The total quantity of final goods and services produced within an economy. |
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Term
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Definition
The total value of all final goods and services produced in the economy during a given year, calculated using the prices of selected base year.
RGDP = (nominal GDP)/price level
RDGP = (price level)(amount of item) |
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Term
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Definition
| The total value of all final goods and services produced in the economy during a given year, calculated with the prices current in the year in which the output is produced. |
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Term
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Definition
| The method of calculation changes in the real GDP using the average between the growth rate calculated using the early base year and the growth rate calculated using a late base year. |
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Term
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Definition
| GDP divided by the size of the population; it is equivalent to the average GDP per person. |
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Definition
| People currently holding a job in the economy, either full time or part time. |
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Term
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Definition
| People actively looking for work but aren't currently employed. |
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Definition
| Equal to the sum of the employed and the unemployed. |
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