GDP - REALDPG MEAM

What does GDP stand for?

Gross Domestic Product

Expenditure in the household sector is called?

Consumption

Expenditure in the foreign sector is called?

Net Exports

Expenditure in the business sector is called?

Investment

Expenditure in the government sector is called?

Government purchases

These refer to intangiblr items such as car repair, entertainment, etc.

Services

A good in hand of the final user, the ultimate consumer.

Final Good

A good that serves as an input to the production of a final good

Intermediate Good

Good that is expected to last more than 3 years

Durable goods

Good that is not expected to last for more than 3 years

Nondurable Goods

A country’s total domestic spending on foreign goods

imports

A country’s total foreign spendings on domestic goods

Exports

It is the value of the entire output produced annually within a country’s borders, adjujsted for price changes

Real GDP

It is said that a __________ has occured when Real GDP in one year is higher than Real GDP in the previous year

Annual Economic Growth

These are government payments to persons that are bot made in return for goods and services.

Government Transfers

GDP

is the total market value of all
final goods and services produced
annually within a country’s borders

Double Counting

refers to counting a good more than once
when computing GDP.