Economics--National Income Accounting
Terms
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- National Income Accounting
- Gathering and calculating economy-wide statistics on the total output of an economy
- Gross Domestic Product (GDP)
- The market value of all final goods and services produced in a year within one country. =C + I + G + X
- Circular Flow Diagram
- A model showing the flow of output and income between households and firms
- Intermediate Goods
- A good that is used as in imput in the production of final goods and services
- Value Added
- The difference between the vlue of output and the value of the intermetdiate gooods used in production of that output.
- Inventory
- The stock of unsold goods held by a firm
- Capital Consumption Allowance
- The amount capital goods depreciate (wear out) and replaced in one year
- Indirect Business Tax
- A tax that is collected by business for a government agency.
- Gross National Product (GNP)
- GDP plus factor incomes from abroad minus payments of factor income to foreigners
- Net National Product (NNP)
- GNP - Capital Consumption Allowance
- National Income
- NNP - indirect business taxes
- Personal Income
- National Income + income received but not earned - income earned but not received
- Transfer payment
- Income transferred by the government from one citizen to another
- Disposable Income
- Personal Income - personal taxes
- Nominal GDP
- GDP in current prices (NOT compensated for Inflation)
- Real GDP
- GDP in prices from some base year (essentially GDP with inflation factored out).
- GDP Adjusted for PPP
- GDP figures adjusted such that cross national comparisons are possible. This adjustment takes varying costs of living into consideration.
- Macroeconomics
- The study of a country's economy as a whole.
- Great Depression
- A world wide economic collapse, during which GDPs fell and unemploymen rates skyrocketed.
- Centrally Planned Economy
- An economic system in which the government determins what goods and sercies are produced and the prices at which they are sold.
- Mixed Economy
- An economic system which has elements of the free market (generally private property) and central planning