GDP
GDP
The total market value of all final goods and final services produced annually within the boundaries of a nation.
Intermediate Goods
Products that are produced for resale
Net exports
Exports minus Imports
National income accounting
This technique is used to measure the overall production of a country's economy as well as other related variables
Value Added
The amount by which the value of an article is increased at each stage of its production, exclusive of initial costs.
Nominal GDP
gdp measured in terms of the price level at the time of measurement; Gdp not adjusted for inflation
Final goods
Goods that have been purchased for final sale
Taxes on production and imports
A National income accounting category that includes such taxes as sales, excise, business property taxes, and tariffs that firms treat as costs of producing a product and pass on (in whole or in part) to buyers by charging a higher price.
Expenditures Approach
The methods that adds all expenditures made for the final goods and final services to measure the GDP
Gov. Purchases
Expenditures by government for goods and services that gov. consumes in providing public services as well as expenditures for publicly owned capital that has along lifeline
Multiple counting
Counting the same good or product more than once
Durable goods
A consumer good with an expected life of three or more years
National Income
Total income earned by resource suppliers for their contributions to gross domestic product plus taxes on production and imports; the sum of wages and salaries, rent, interest, profit, proprietors' income, and such taxes.
Income Approach
The method that adds all the income generated by the production of final goods and final services to measure the GDP
Base year
The year with which other years are compared when an index is constructed
Nominal GDP
GDP measure in terns of the price level at the time of measurement
Nondurable Goods
A consumer good with an expected life of less than three years
Personal income
the earned and unearned income available to resource suppliers and others before the payment of personal taxes
Personal consumption expenditures
The expenditures of households for both durable and nondurable consumer goods
Price index
An index number that shows how the weighted-average price of a "market Basket" of goods changes over time relative to its price in a specific base year
Real GDP
Real gross domestic product
Services
an act or use for which a consumer or government is willing to pay
Disposable Income
Personal income less personal taxes; income available for personal consumption expenditures and personal saving
Net private domestic investment
Gross private domestic investment less consumption of fixed capital; the addition to the nations stock of capital during a year
National Income Accounting
This technique is used to measure the overall production of a country's economy as well as other related variables