Go With the Flow
Calculated by the Bureau of Economic Analysis, the National Income and Product Accounts are a division of this U.S. Executive Department.
What is the Department of Commerce?
What is "Gross Domestic Product" / "GDP"?
This is the term used to refer to the total production value of all final goods and services of an economy within a year using the current year's dollar value.
What is "Nominal Gross Domestic Product / GDP"?
This may be defined as all persons age 16 and over who are physically and mentally capable of engaging in some form of productive work.
What is the "Working Age Population"?
This category includes raw materials and commodities such as oil or agri-products which are used to produce "Final Goods and Services" but are NOT counted as part of GDP because they are not "Final Goods" themselves.
What are "Intermediate Goods / Services"?
As part of a basic Circular-Flow Diagram model, those individual consumers and groups of consumers who co-inhabit a living and shared income unit are referred to as these. They also serve as a source of Labor and Raw Materials for the Circular Flow Model.
What are "Households"?
For the equation: GDP = C + G + I + X - IM
"C" stands for this.
What is "Consumer Spending"?
This may be defined as the total production value of all final goods and services of an economy adjusted for inflation by using the dollar value of a specified base year for comparison.
What is "Real Gross Domestic Product / GDP"?
This may be described as the combined total of all persons actively working for wages or salaries plus all persons actively seeking gainful employment.
What is the "Labor Force"?
These are goods that were produced and sold in a prior year, but a being re-sold in the current year (typically as part of "Consumer Spending") but is NOT counted as part of the GDP in the current year.
What are "Used Goods"?
In a Basic Circular-Flow Diagram Model, these are the entities which sell products (goods and services) to the Government and to consumers for money payments.
What are "Firms" / "Businesses"?
For the equation: GDP = C + G + I + X - IM
"G" stands for this.
What is "Government Spending"?
This is defined as an economy's GDP divided by the population of that country. It is equivalent to the average GDP per person.
What is "GDP per capita"?
This may be defined as the ratio of persons gainfully employed or currently seeking gainful employment to the able-bodied population age 16 and above.
What is the "Labor Force Participation Rate"?
These are goods produced in a foreign country and shipped into another country for sale. Therefore they are considered part of the GDP in their country of origin and NOT part of the GDP of the country into which they are shipped and sold.
What are "Imports" or "Imported Goods"?
In a Basic Circular-Flow Diagram Model, this entity purchases products (goods and services) from suppliers in exchange for money, but also provides public goods (i.e. infrastructure, parks, libraries, schools, etc.) and public services (police / fire protection, etc.).
What is "Government"?
For the equation: GDP = C + G + I + X - IM
"I" stands for this.
What is "Investment Spending"?
This term refers to the total production of an economy, and is often equal to and synonymous with "Real GDP."
What is "Aggregate Output"?
Defined as those persons who are actively seeking work, but currently without a paying job.
What is "Unemployed"?
These are things such as cash accounts, stocks and bonds which may be used to purchase final goods and services, but are not considered "Finals Goods" in and of themselves and are therefore NOT counted as part of GDP.
What are "Financial Assets"?
Within a Basic Circular-Flow Diagram Model, those things such as "Labor" and "Raw Materials" are part of this "Market."
What is the "Factor" / "Resource" Market?
For the equation: GDP = C + G + I + X - IM
"X - IM" refers to this.
What is "Exports Minus Imports" or "Net Exports"?
This refers to the method of calculating the Real GDP average growth rate using both an earlier base year and a late base year.
What is "Chain-Linking"?
This is the ratio of those persons actively seeking work but currently without a job to the total number of the Labor Force.
What is the "Unemployment Rate"?
These are such things as machinery, transport vehicles, and construction of new buildings, factories and dwellings which may be instrumental in the manufacture of other final goods and services, but ARE counted as part of GDP because they are considered "Final Goods" for the businesses that purchase them.
What are "Capital Goods" / "Capital Assets" / "Fixed Capital"?