Studied by 1 personInvestment
________: spending by firms on final goods and services, primarily capital goods.
Gross
________ domestic product (GDP): market value of the final goods and services produced in a country during a given period.
Consumption expenditure
________ (or consumption): spending by households on goods and services such as food, clothing, and entertainment.
Market value
________: selling prices of goods and services in the open market.
Gross domestic product (GDP)
market value of the final goods and services produced in a country during a given period
Market value
selling prices of goods and services in the open market
Final goods/services
goods/services consumed by the ultimate user; because they are the end products of the production process, they are counted as part of GDP
Intermediate goods/services
goods/services used up in the production of final goods and services and therefore not counted as part of GDP
Capital good
long-lived good that is used in the production of other goods and services
Value added
for any firm, the market value of its product/service minus the cost of inputs purchased from other firms
Consumption expenditure (or consumption)
spending by households on goods and services such as food, clothing, and entertainment
Investment
spending by firms on final goods and services, primarily capital goods
Government purchases
purchases by federal, state and local governments of final goods and services; government purchases do not include transfer payments, which are payments made by the government in return for which no current goods or services are received, nor do they include interest paid on the government debt
Net exports
exports minus imports
Nominal GDP
measure of GDP in which the quantities produced are valued at current-year prices; nominal GDP measures the current dollar value of production
Real GDP
measure of GDP in which the quantities produced are valued at the prices in a base year rather than at current prices; real GDP measures the actual physical volume of production
Gross domestic product (GDP)
Market value of the final goods and services produced in a country during a given period
Market value
Selling prices of goods and services in the open market
Final goods/services
Goods/services consumed by the ultimate user; because they are the end products of the production process, they are counted as part of GDP
Intermediate goods/services
Goods/services used up in the production of final goods and services and therefore not counted as part of GDP
Capital good
Long-lived good that is used in the production of other goods and services
Value added
For any firm, the market value of its product/service minus the cost of inputs purchased from other firms
Consumption expenditure (or consumption)
Spending by households on goods and services such as food, clothing, and entertainment
Investment
Spending by firms on final goods and services, primarily capital goods
Government purchases
Purchases by federal, state and local governments of final goods and services; government purchases do not include transfer payments, which are payments made by the government in return for which no current goods or services are received, nor do they include interest paid on the government debt
Net exports
Exports minus imports
Nominal GDP
Measure of GDP in which the quantities produced are valued at current-year prices; nominal GDP measures the current dollar value of production
Real GDP
Measure of GDP in which the quantities produced are valued at the prices in a base year rather than at current prices; real GDP measures the actual physical volume of production
Note
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