Chapter 5 - Measuring a Nation’s Production and Income

Housework

________ and Childcare: GDP ignores transactions that do not take place in organized markets.

Macroeconomists

________ collect and analyze production and income data to understand how many people will find jobs and whether their living standards are rising or falling.

Chain weighted index

________ is a method for calculating changes in prices that use an average of base years from neighboring years 5.5 Fluctuations in GDP.

Consumption expenditures

________ are purchases by consumers of currently produced goods and services, either domestic or foreign.

GDP

________ will increase if prices increase, even if the physical amount of goods that are produced remains the same.

Flow

Value- added is the sum of all the income- wages, interest, profits, and rent- generated by an organization An Expanded Circular ________.

GDP accounting

In ________, investment denotes the purchase of new capital.

Depreciation

________ (a capital consumption allowance) is where the existing plant, equipment, and housing deteriorate or wear.

Depression

________ is the common term for a severe recession.

Imports

________ are goods and services we buy from other countries.

Transfer payments

________ are payments from governments to individuals that do not correspond to the production of goods and services.

Pollution

________: GDP does not value changes in the environment that occur in the production of output.

Gross Domestic Product

________ (GDP) is the total market value of final goods and services produced within an economy in a given year.

recession

A(n) ________ is a period when real GDP falls for 6 or more consecutive months.

net investment

If we subtract depreciation from gross investment, we obtain ____________

trade deficit

When we buy more goods from abroad than we sell, we have a _______________.

trade surplus 

A ___________occurs when our exports exceed our imports.

Depression

__________ is the common term for a severe recession.

peak

The date at which the recession starts - that is when output starts to decline- is called the _________.

trough

The date at which it ends - that is when output starts to increase again- is called the __________.

expansion

After a tough, the economy enters a recovery period, or period, or period of __________.