Untitled Deck

Question 1

Treasury bonds, notes or bills

Answer 1

Promissory notes issued by gov when it borrows money

Question 2

Corporate bonds

Answer 2

Promissory notes issued by corporates (lending money)

Question 3

Shares of stock

Answer 3

A holder has a share in ownership and profit

Question 4

Dividend

Answer 4

portion of profit a firm pays each period to shareholders

Question 5

GDP doesn’t include

Answer 5

Used goods, unpaid work and informal economy, transfer payments, intermediate goods, financial transactions, any legal transaction

Question 6

Final goods and services

Answer 6

Produced for final use

Question 7

Intermediate goods

Answer 7

Produced to be further processed (not included in GDP)

Question 8

Value added

Answer 8

(Value of goods as they leave production stage)- (cost of goods as they enter)

Question 9

If Qs>Qd

Answer 9

Surplus (excess supply)

Question 10

If Qd>Qs

Answer 10

Shortage (excess demand)

Question 11

How many approaches are there what differentiates them

Answer 11

Expedenture approach (to get GDP so what people spend)
Income approach (you look at what people make so net income)

Question 12

National income

Answer 12

Total income earned by factors such as: paper

Question 13

If GDP> GNP

Answer 13

Income earned by foreigners domestically is greater than by citizens abroad

Question 14

GDP to GNP

Answer 14

GDP+(income of abroad)- (income foreigners here)= GNP

Question 15

GNP to NNP

Answer 15

GNP- depreciation

Question 16

NNP is

Answer 16

Net national product ( goods and services without considering the used up)

Question 17

NNP to national income

Answer 17

NNP- statistical discrepancy= national income

Question 18

National income to PI

Answer 18

National income- retained earnings= PI

Question 19

PI to disposable PI

Answer 19

PI- PI tax = disposable PI

Question 20

Disposable PI to personal savings

Answer 20

Disposable PI- personal C - interest payment -transfer payment = personal savings

Question 21

Growth rate deltaGDP

Answer 21

(GDP2-GDP1)/GDP1 *100

Question 22

Nominal GDP

Answer 22

GDP in current dollars

Question 23

Real GDP

Answer 23

Nominal GDP adjusted for inflation

Question 24

Fixed weight procedure

Answer 24

Keep Q cte, choose a base year and price of previous

Question 25

GDP

Answer 25

Q * price

Question 26

GDP deflator

Answer 26

(nominal GDP)/(real GDP) *100

Question 27

NFF

Answer 27

Net foreign factor

Question 28

NFF

Answer 28

Income earned by domestic citizens abroad−Income earned by foreigners domestically