Macro Chapter 2 Flashcards

The method that sums the value added by each firm in the economy (revenue - cost of intermediate goods)

The method that sums the total spending on final goods and services in the economy (C + I + G + NX)

The method that sums all the incomes earned by factors of production in the economy (including wages, profits, interest and taxes)

True

Economic activities that are intentionally hidden from government authorities and are difficult to measure directly

These services are typically not sold in the market

The weighted average of a set of observed prices that gives a measure of the price level

Individuals who are currently holding a job

Individuals who are not currently working but are actively searching

Individuals who are neither employed nor unemployed (e.g., students, retirees)

The sum of the employed and unemployed