Economics Unit 5

gross domestic product

the dollar value of all final goods, services, and structures produced within a country's national borders during a one-year period

intermediate product

products that are components of other final products already included in the GDP; for example, new tires and radios for use on new cars

secondhand sales

sales of used goods; category of activity not included in GDP computation

real GDP

gross domestic product after adjustments for inflation; same as GDP in constant dollars

current GDP

gross domestic product measured in current prices, unadjusted for inflation

gross national product (GNP)

the market value of goods and services produced by labor and property supplied by U.S. residents

net national product

gross national product minus depreciation charges for wear and tear on capital equipment; a measure of net annual production generated with labor and property supplied by a country's residents

national income

gross national product minus depreciation charges for wear and tear on capital equipment; a measure of net annual production generated with labor and property supplied by a country's residents

personal income

the total amount of income going to the consumer sector before individual income taxes are paid

disposable personal income

personal income less individual income taxes; total income available to the consumer sector after income taxes

fiscal policy

use of government spending and revenue collection measures to influence the economy

keynesian economics

government spending and taxation policies suggested by John Maynard Keynes to stimulate the economy; synonymous with fiscal policies or demand-side economics multiplier change in overall spending caused by a change in investment spending

accelerator

change in investment spending caused by a change in overall spending

automatic stabilizer

programs that automatically provide government benefits during an economic downturn; unemployment, insurance, and entitlement programs

unemployment insurance

government program providing payments to the unemployed; an automatic stabilizer

entitlements

program or benefit using established eligibility requirements to provide health care, food, or income supplements to individuals