________- the purchase of goods that will be used in the future to produce more goods and services.
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Consumption
________- spending by households on goods and services, with the exception of purchases of new housing.
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Gross domestic product (GDP)
the market value of all final goods and services produced within a country in a given period of time.
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Money
________ continuously flows from households to firms and back to households.
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persons income
A(n) ________ determines whether they can afford higher standards of living.
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Net exports
________- spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports) 10.4 Real Versus Nominal GDP.
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GDP
________ per person seems a natural measure of the economic well- being of the average individual.
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GDP
________ adds together different kinds of products into a single measure of the value of the economic activity.
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Government purchases
spending on goods and services by local, state, and federal governments
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Nominal GDP
the production of goods and services valued at current prices
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