Economics 6
Terms
undefined, object
copy deck
- national income accounting
- a measurement system used to estimate national income and it's components; one approach to measuring an e xonomy's aggregate performance.
- total income
- the yearly amount earned by the nation's resources.
- final goods and services
- goods and services that are at their final stage of production and will not be transformed into yet other goods and services
- gross domestic product (GDP)
- the total market value of all final goods and services produced by factors of production located within a nation's boarders.
- intermediate goods
- goods used up entirely in the production of final goods
- values added
- the dollar value of an industry's sales minus the value of intermediate goods used in production
- expenditure approach
- computing GDP by adding up the dollar value at current market prices of all final goods and services
- income approach
- measuring the GDP by adding up all components of national income
- durable consumer good
- consumer goods that have a life span of more than 3 years
- nondurable consumer goods
- consumer goods that are used up within 3 years
- services
- mental or phsycial labor or help purchased by consumers
- gross private domestic goods
- creation of capital goods, such as factories, that can yield production and hence consumption in the future.
- investment
- any use of today's resources to expand tomorrows production or consumption
- producer durables or capital goods
- durable goods having an expected service life of more than three years that are used by businesses to produce other goods and serives
- fixed investment
- purchases by businesses of newly produced producer durables, or capital goods, such as production of machinery and office equipment.
- inventory investment
- changes in the stocks of finished goods and goods in the process, as well as changes in the raw materials that businesses keep on hand.
- say's law
- supply creates it's own demand
- money illusion
- reacting to changes in money prices rather than relative prices
- keynesian short-run aggregate supplu curve
- horizontal portion of the aggregate supply curve in which there is excessive unemployment and unused capacity in the economy
- short-run aggregate suppluy curve
- relationship betweeb total planned economywide production and the price level in the short run. if prices adjust incompletely in the short run, the curse is positively shaped