econ ugh

Multiple Counting

Wrongly including the value of intermediate goods in the gross domestic product which counts the same good or service more than once

Expenditures Approach

The method that adds all expenditures made for final goods and services to measure gross domestic product

Income Approach

The method that adds all the income generated by the production of final goods and final services to measure the gross domestic product

Personal Consumption Expenditures

The expenditures of households for both durable and nondurable consumer goods

Durable Good

A consumer good with an expected life of three or more years

Nondurable Good

A consumer good with an expected life of less than three years

Service

An intangible life-use for which a consumer firm or government is willing to pay

Gross Private Domestic Investment

Expenditures that increase the nation's stock of capital including physical objects and intangible ideas that help produce goods and services