Studied by 4 peopleHouseholds
________ are the primary demanders of goods and services in the economy.
Aggregate supply
________ represents the production of all final goods and services in the economy.
Consumption
________ is generally the largest component of GDP, accounting for about 71 percent of total GDP in 2011.
Imports
________ are goods that are produced abroad but purchased domestically.
Aggregate demand
________ is composed of all of the consumption, investment, government spending, and net export expenditures that make up GDP.
behaviour of buyers
The AD /AS model can be used to show how changes in the ________ and sellers impact GDP.
circular flow model
The ________ shows the movement of income and spending between households and businesses in the economy.
social security
Not all government spending is included in GDP because spending on things such as ________, debt service, and unemployment insurance are not purchases of goods and services.
Government
________ is a supplier in input markets when it sells or rents its resources to buyers.
Business firms
________ are the primary suppliers of output and the primary demanders of labour and other economic resources.
output markets
In ________, business firms are the suppliers of goods and services, and households are the demanders of goods and services.
Exports
________ are included in GDP because they are produced domestically but not captured in the other expenditure components of GDP.
Investment
________ does not include the purchases of financial products like stocks and bonds, because stocks and bonds are not goods and services that are produced.
GDP
________ is called gross domestic product because it counts only production that occurs within a given economy's borders.
Government expenditure
________ and investment made up about 22 percent of GDP in 2011.
Business spending
________ on tools, computers, and buildings is investment, as is spending on new residential housing.
demand side
On the ________, increases in the price level reduce the amount of goods and services that consumers can buy, so the quantity of goods and services demanded falls and the economy moves upward along the AD curve.
Gross Domestic Product
________ (GDP) measures the dollar value of all final goods and services produced in an economy during a given period (such as per quarter or per year)
income approach
The ________ uses incomes earned by producers to measure GDP.
Business cycle contractions
________ or recessions are periods of slowdown in economic activity, reduced employment, and declines in production.
Final goods
________ and services are goods that are sold to their end users and will not be sold again.
domestic buyers
The purchase of foreign- made goods and services by ________ is called imports.
Business Cycles
________ are recurring expansions and contractions in the level of aggregate economic activity.
international trade
A closed economy is one that does not engage in ________.
Aggregate
________ means to gather a set of items together to form a total or whole.
private investment
Using the expenditures approach, GDP can be divided into four basic components: consumption expenditure (C), ________ (I), government expenditure and investment (G), and net exports (exports [X] minus imports [M])
intersection of AD
The ________ and AS tells the equilibrium level of GDP and the equilibrium price level in the economy.
Net exports
________ is a measure of the difference between exports and imports.
Consumption
________ (C) is household spending on final goods and services.
Government
________ is a demander in input markets when it hires workers or buys land and capital.
Exports
________ are goods produced domestically but sold abroad.
Aggregate demand
________ (AD) is the demand for all goods and services in an economy.
Business cycles
________ are the recurring expansions and contractions in GDP over time.
The interactions between households and businesses take place in two types of markets
output markets and input markets
Using the expenditures approach, GDP can be divided into four basic components
consumption expenditure (C), private investment (I), government expenditure and investment (G), and net exports (exports [X] minus imports [M])
NoneBashCSSCC GoHTMLObjective-CJavaJavaScriptJSONPerlPHPPowershellPythonRubyRustSQLTypeScriptYAMLCopy ^^GDP = C + I + G + (X
M)^^
NoneBashCSSCC GoHTMLObjective-CJavaJavaScriptJSONPerlPHPPowershellPythonRubyRustSQLTypeScriptYAMLCopy **1) Consumption (C)
**
NoneBashCSSCC GoHTMLObjective-CJavaJavaScriptJSONPerlPHPPowershellPythonRubyRustSQLTypeScriptYAMLCopy **3)Government Expenditure and Investment (G)
**
NoneBashCSSCC GoHTMLObjective-CJavaJavaScriptJSONPerlPHPPowershellPythonRubyRustSQLTypeScriptYAMLCopy**4)Net Exports (X
M)**
America imported more than it exported in 2011, so U.S. net exports in 2011 were negative, accounting for about
4 percent of GDP
Note 
Flashcard (32)