Chapter 10 HW - Categories of Expenditures

Flow

Flow/Stock: The amount a company borrows in any given year by issuing bond

Flow

Flow/Stock: The number of new houses built each month in the United States

Stock

Flow/Stock: The total value of a company's outstanding bonds.

Stock

Flow/Stock: The value of a rare coin

Flow

Flow/Stock: The amount by which a rare coin increases in value each year

Stock

Flow/Stock: The number of houses in the United States.

exports (x)

Charlie's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China.

Government purchases (G)

The state of Pennsylvania repaves PA 320, which goes through the center of Swarthmore.

Investment (I)

Patrick buys a new set of tools to use in his plumbing business.

Consumption (C)

Deborah buys a piece of jewelry made locally.

Consumption (C) and Imports (M)

Deborah buys a new BMW that is assembled in Germany.

expenditure approach

Expenditure/income approach: Fixed investment

income approach

Expenditure/income approach: Net interest

expenditure approach

Expenditure/income approach: Government consumption and gross investment

expenditure approach

Expenditure/income approach: services

income approach

Expenditure/income approach: depreciation

expenditure approach

Expenditure/income approach: Durable goods

income approach

Expenditure/income approach: employee compensation

income approach

Expenditure/income approach: rents

income approach

Expenditure/income approach: profits

expenditure approach

Expenditure/income approach: inventories

expenditure approach

Expenditure/income approach:nondurable goods

expenditure approach

Expenditure/income approach: imports

income approach

Expenditure/income approach: indirect business taxes

expenditure approach

Expenditure/income approach: exports

expenditure approach

the national income accounting method that measure GDP by asking all the spending final goods during a period of time

Gross domestic product (GDP)

The market value of all final goods and services produces in a nation during a period of time, usually a year.

transactions

GDP includes only current ______

transfer payments

a government payment to individuals not in exchange for goods or services currently produced

final goods

finished goods and services produced for the ultimate user

intermediate goods

Goods and services used as inputs for the production of final goods

circular flow model

A diagram showing the exchange of money, products, and resources between households and businesses.

flows

a rate of change in a quantity during a given time period, such as dollars per year

stocks

a quantity measured at one point in time.

income approach

the national income accounting method that measures GDP by adding all incomes, including compensation of employees, rents, net interest, and profits

personal income

the total income received by households that is available for consumption, saving, and payment of personal taxes

national income

the total income earned by resource owners, including wages, rents, interest, and profits

disposable personal income

the amount of income that households actually have to spend or save after payment of personal taxes

nominal GDP

the value of all final goods based on the prices existing during the time period of production

GDP chain price index

a measure that compare changes in the prices of all final goods during a given year to the prices of those goods in a base year