Flashcards in Week 4- Measuring Domestic Output and National Income lecture Deck (32):
National income accounting looking at the___
Overall performance of the economy.
Bureau of Economic Analysis gathering data on___
Income and Product Accounts on US economy.
Gross Domestic Product measures___
Total market value of all value of goods produced in a given year.
GDP including all goods___
- Produced by citizen or goods produced on US soil.
GDP can be used as Monetary Measurement to compare relative values over___
Different years of producing different amount of goods and services.
GDP only values____
Final goods and ignores intermediate goods (goods purchased for resale or for further processing).
Goods in stores ready to be purchases.
Value added tells us how much___
Each goods worth on our process to final goods.
Nonproduction transaction (financial transaction and second hand sales).
Public transfer payments are___
Payments gov’t makes directly to households that contribute nothing to current production in return.
Private transfer payments are___
Funds transfer from 1 person to the other.
Stock market transactions___
2 ways to look at GDP:
1. GDP as the sum of all money spent in buying goods.
2. GDP as income created from producing that goods.
Personal consumption expenditure: all the money that households spent on ___
Durable (3+ yr), and non-durable (food) consumer goods.
investments creating new capital assets (create jobs, income).
Final purchases of machinery, equipment, tool…ALL investment of goods.
only investment in form of added capital (new).
Gov't purchases includes:
1. Expenditure for goods___
2. Expenditure for social capital___
1. that gov’t consumes by providing public services.
2. school, highway. Have long life time.
Net exports (Xn)___
Xn=X – M X= export M= import.
GDP= C+Ig+G+Xn-----Personal consumption + Gross investment + Gov’t spending + net exports.
- income from supply property resources.
income from labor resources.
money paid by private businesses to suppliers of money capital.
net income of partnership and other businesses.
Corporation have limited liability.
National income includes all income that___
flow to American supplied resources, whether they’re here or abroad.
Net Domestic Product___
GDP adjusted for depreciation.
Income earned as individuals.
Disposable Income formula___
C + S consumption + saving. OR personal income – taxes.
Nominal (unadjusted) GDP-
unadjusted for inflation. Often appears higher than real GDP.
adjusted for inflation.
measures price of specified collection of goods called market basket.