Macroeconomics and National Accounts

These flashcards cover key concepts related to macroeconomics, GDP measurement, and the relationships between economic performance and societal welfare.

Macroeconomics

The branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.

GDP (Gross Domestic Product)

The market value of all final goods and services produced within a country during a specific time period.

Final Goods and Services

Products that have completed the manufacturing process and are ready for sale to the final consumer.

Nominal GDP

The total value of all final goods and services produced in a country, measured at current prices.

Real GDP

GDP adjusted for inflation, reflecting the true value of goods and services produced over time.

Circular Flow of Income

An economic model that depicts how money flows through the economy between households and firms.

Expenditure Method

A method of calculating GDP by adding all expenditures made in the economy.

Income Method

A method for calculating GDP based on the total income earned by factors of production in the economy.

Measurement in Economics

The process of quantifying economic performance and the effects of economic policies.

Economic Fluctuations

Short-term variations in the economy's growth rate or output.

Long-run Growth

The sustained upward trend in the economy's output over an extended period.

Policy Institutions

Organizations that develop and implement economic policy, often with a focus on macroeconomic considerations.

Business Decisions

Choices made by firms regarding investment, production, or resource allocation.

Public Debt

The total amount of money that a government owes to creditors.

National Accounts

A systematic way of measuring economic performance at a national level, including indicators like GDP.

Household Production

Goods and services produced by households for their own use.

Underground Economy

Economic activities that are not reported to the government and are thus not reflected in official statistics.

Labour Income

The income earned by workers from employment, typically in the form of wages.

Capital Income

Income earned from the ownership of physical or financial assets.

Easterlin Paradox

The observation that higher income levels do not necessarily lead to higher levels of happiness for wealthier countries compared to poorer ones.