GDP
Goods that provide a flow of use to the end consumer over a long period of time (e.g. 5-6 years.)
What are durable goods?
GDP measured in current prices.
What is Nominal GDP?
Difficult to account for in GDP because it is either illegal (e.g., drug sales, prostitution, illegal gambling, etc.) or avoids taxation by the state (e.g., working for cash, not reporting tip income, false receipts designed to minimize taxation on a sale, etc.)
What is the underground economy?
Over time, this is the most stable component of the expenditures calculation of GDP.
What is C or Personal Consumption Expenditures?
The ingredients bought my Mrs. Smith's, Inc. to make a frozen "Mrs. Smith's Banana Puddin' Pie".
(I hate to break it to you but "Mrs. Smith" does not actually make your puddin' pie. Like Santa Claus, Mrs. Smith is not real.)
What is an intermediate good?
The major components of GDP if calculated using the Expenditures Approach.
What is C+I+G+(X-N) or Consumption, Investment, Government, and Net Exports (= Exports - Imports).
C = Personal consumption expenditures ; I = Gross private domestic investment; G = Government consumption expenditures and gross investment; and NE = Net Exports of G&Ss
GDP adjusted for changes in the general price level over time.
What is Real GDP?
Unpaid housekeeping such as cleaning, washing clothes, ironing, and cooking at home.
What is non-market or non-priced production?
Over time, this is the least stable component of the expenditures calculation of GDP.
What is I or Gross private domestic investment?
Only these types of goods and services are counted in the calculation of GDP.
What are finished goods and services?
Goods or services that are completely consumed in the GDP period being measured.
What are non-durable goods?
sum_(i=1)^n Q_i*P_i
What is GDP?
Per capita GDP gives us the ______ GDP in a nation.
What is an average?
Adding up the costs of the inputs or "factors" used to make measured GDP.
What is the Factor or Factor Income Approach?
GDP is calculated over some typical, standard period of time.
What is Annual GDP?
A significant and widespread decline in employment, Real GDP, real income, industrial production, and wholesale and retail sales.
What is a recession?
2016 Nominal GDP measured in base year 2009 prices.
What is Real GDP in 2016?
Suppose I owned Caesar's Head Mountain and hired a man with a bulldozer to flatten it because I thought it was more aesthetically beautiful. What I pay him would count in the calculation of GDP, though it represents a failure of GDP in some way.
What is an economic "bad" in the form of an environmental cost?
Includes the market value of all finished G&Ss produced by a country's residents wherever they are located, over a one-year period.
What is GNP or Gross National Product?
The ratio: [(Nominal GDP/Real GDP) X 100]
What is the GDP Deflator?
Short-run fluctuations around the long run growth trend for RGDP.
What is the business cycle?
Required practice in economic analysis when we compare measures that include prices over time.
What is the conversion of nominal values to real values?
Approximately $45 Trillion dollars ($45,000,000,000,000)
What is the aggregate value of one extra year of life in the U.S.?
Includes the market value of all finished G&Ss produced within a country by both residents and nonresidents, over a one-year period.
What is GDP or Gross Domestic Product?
The legal claims to financial assets that are not included in the calculation of GDP.
What are stocks and bonds?