Principles of Macroeconomics chapter 6

data collected and published by the govt describing the various components of national income and output in the economy

-total market value of all goods and services produced within a given period by factors of production located within a country
-does not include transactions where no new goods or services are produced even if money or goods change hands

goods and services produced for final use

goods produced by one firm for use in further processing by another firm

the difference between the value of goods as they leave a stage of production and the cost of the goods as they entered the stage

the total market value of all final goods and services produced within a given period by factors of production owned by a country’s citizens, regardless of where the output is produced

method of computing GDP that measures the total amount spent on all final goods and services during a given period

GDP=C+I+G+(EX-IM)

method of computing GDP that measures the income- wages, rents, interest, and profits- received by all factors of production in producing final goods and services

household spending on consumer goods

spending by firms and households (private sector) on new capital including plant, equipment, and new residential structures

spending by the government on fgs

net spending by the rest of the world, or exports-imports

goods that last a relatively long time, such as cars and household appliances

goods that are used up fairly quickly, like food and clothing

the things we buy that do not involve the production of physical things, such as legal and medical services and education

amount by which firms inventories change during a period. inventories are goods that firms produce now but intend to sell later

the amount by which an asset’s value falls in a given period

the total value of all newly produced capital goods (plant, equipment, housing, and inventory) produced in a given period

gross investment minus depreciation

the total income earned by the factors of production owned by a nation’s citizens

includes wages, salaries, and various supplements- employer contributions to social insurance and pension funds- paid to households by firms and govts

the income of unincorporated businesses

the income received by property owners in the form of rent

the income of corporations

interest paid by business

taxes such as sales taxes, customs duties, and license fees less subsidies that the government pays for which it receives no goods or services in return

net transfer payments by businesses to others

income of govt enterprises

GNP minus depreciation; a nation’s total product minus what is required to maintain the value of its capital stock

the total income of households

personal income minus personal income taxes. the amount that households have to spend

the amount of disposable income that is left after total personal spending in a given period

the percentage of disposable income that is saved.

the current prices that we pay for goods and services

GDP measured in current dollars

the importance attached to an item within a group of items

the year chosen for the weights in a fixed year procedure

a procedure that uses weights from a given base year

price measure, one measure of overall price level

part of the economy in which transactions take place and in which income is generated that is unreported and therefore not counted in GDP

GNP converted into dollars using an average of currency exchange rates over several years adjusted for rates of inflation