GDP
GDP via Expenditures Approach
GDP via Income Approach
Other National Accounts
Nominal GDP vs. Real GDP
100
What is definition of GDP via expenditure approach?

Market value of all final goods and services in a given country in a given year

100

What is the GDP equation via expenditure approach?

recall, Y = .... +....+...+...

Y = C +I+G+NX, where Y= GDP, C= consumption expenditure, I=investment expenditure, G=govt. expenditure, NX = net export

100

Looks at the national income.

What is the Income Approach?

100
Provide essential information about economy's performance.
What are other national accounts?
100
Unadjusted for inflation; based on the price level that existed at the time of the output.
What is nominal GDP?
200

What is national income accounting?

Measures the economy's overall performance, much like what private accounting does for an individual household.

200

GDP by expenditure approach focuses on what?

Looks at the sum of all money spent by consumers in purchasing the GDP.

200
Money that is gained by suppliers of capital from businesses.
What is interest?
200
Also known as GDP adjusted for inflation.
What is net domestic product?
200
Adjusted for inflation to reflect changes in price level.
What is real GDP?
300

Social security, welfare, gift cards, unemployment benefits payments etc. have what in common in measuring GDP?

These are examples of transfer payments, not productive transactions that have "quid pro quo"

300

Both of these add private expenditures to the GDP formula.

What are consumption and investments?

300
______= WRIPSA
What is GDP?
300
In order to determine national income, business taxes are subtracted from net domestic product because the government is not __________.
What is an economic resource?
300
A measure of the price of a market basket in a specific year compared to the price of a market basket in a reference year.
What is the price index?
400

GDP price index measures changes in the____.

Prices of the output produced in the nation.

400

If in 2025 USA imported $100 billion worth of Nachos from Mexico and exported $90 billion worth of iPhones to Mexico, then what is the Net Export for USA for 2025?

- $10 billion

400
Byproducts of the GDP that are taken into account in order to provide the proper output measure.
What are indirect business taxes, consumption of fixed capital, and net foreign factor income?
400
Unearned income (such as welfare).
What are Transfer Payments?
400
Must be deflated in order to show real GDP.
What is nominal GDP?
500

Are stockbroker services counted in the GDP measure?

Yes, GDP measures all final goods and services at their marke prices. 

500

Government purchases intended for everyone's use (e.g. schools).

What is social capital?

500
Partly made up of BOTH unincorporated business income and dividends.
What are profits?
500
In order to determine personal income, _______ is subtracted from national income so that all unearned income is included in the personal income measure.
What are Social Security contributions?
500
Nominal GDP divided by _________ equals the price index.
What is real GDP?
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