Chapter 10 Vocab Flashcards
(10 cards)
What is net exports?
Spending on domestically produced goods by foreigners (exports) MINUS spending on foreign produces goods by domestic residents (imports)
What is GDP deflator?
Nominal GDP over Real GDP
Multiplied by 100
What is consumption?
The spending by households on goods and services, with the exception of purchases of new housing
What is Microeconomics?
The study of how households and firms make decisions and how they interact in markets
What are government purchases?
Spending on goods and services by local, state, and federal governments
What is macroeconomics?
The study of economy wife phenomena including inflation, unemployment, and economic growth
What is investment?
Spending on capital equipment, inventories, and structures, including household purchases of new housing
Why is GDP?
The market value of all final goods and services produced within a country in a given period of time
What is nominal GDP?
The production of goods and services valued at current prices
What is real GDP?
The production of goods and services at constant prices
