Macroeconomics Chapter 7 Flashcards

A good in the hands of its final user.

A good that is used as an input in the production of final goods and services.

<p>True</p> Signup and view all the answers

<p>A payment made by a government to someone who does not produce a good or service in return.</p> Signup and view all the answers

<p>The sum of spending on durable goods, nondurable goods, and services.</p> Signup and view all the answers

<p>The sum of all purchases of newly produced capital goods, changes in business inventories, and purchases of new residential housing.</p> Signup and view all the answers

<p>Changes in stock of unsold goods.</p> Signup and view all the answers

<p>Business purchases of capital goods, such as machinery and factories, and purchases of new residential housing.</p> Signup and view all the answers

<p>Federal, state, and local government purchases of goods and services and gross investment of highways, bridges, and so on.</p> Signup and view all the answers

<p>Payments to persons that are not made in return for currently supplied goods and services.</p> Signup and view all the answers

<p>Total domestic spending on foreign goods.</p> Signup and view all the answers

<p>Total foreign spending on domestic goods.</p> Signup and view all the answers

<p>Exports minus imports.</p> Signup and view all the answers

<p>Sum of compensation of employees, proprietor's income, corporate profits, rental income of persons, and net interest.</p> Signup and view all the answers

<p>The estimated value of capital goods over time as a result of their use in production.</p> Signup and view all the answers

<p>GDP minus the capital consumption allowance (depreciation).</p> Signup and view all the answers

<p>The amount of income individuals actually receive (minus taxes).</p> Signup and view all the answers

<p>Amount of income left to an individual after taxes have been paid, available for spending and saving.</p> Signup and view all the answers

<p>The value of the entire output produced annually within a country's borders, adjusted for price changes.</p> Signup and view all the answers

<p>Increases in real GDP.</p> Signup and view all the answers

<p>Recurrent swings (up and down) in real GDP.</p> Signup and view all the answers

<p>An amount of money spent.</p> Signup and view all the answers

<p>Products that GDP omits because these products aren't traded in an official market setting.</p> Signup and view all the answers

<p>Activities that don't count in GDP because there are no written records.</p> Signup and view all the answers

<p>GDP omits this because the item was counted when it was originally produced.</p> Signup and view all the answers

<p>The trading of stocks and bonds, not counted in GDP.</p> Signup and view all the answers

<p>Air pollution, water pollution; anything that distracts from human happiness.</p> Signup and view all the answers

<p>Total GDP divided by the number of people in a country.</p> Signup and view all the answers

<p>Products having a lifetime of 3 or more years.</p> Signup and view all the answers

<p>Goods that are used up fairly quickly, such as food and clothing.</p> Signup and view all the answers

<p>Intangible items such as lawn care, car repair, and entertainment.</p> Signup and view all the answers

<p>Compensation of employees = Largest component of national income, including wages and salaries paid to employees. Proprietor's income = Income earned by self-employed individuals and owners of unincorporated businesses. Corporate profits = Income earned by the stockholders of a corporation. Rental income = Income received by individuals for the use of their non-monetary assets. Net interest = Interest income received by U.S. households minus the interest they paid out.</p> Signup and view all the answers

<p>Alternating periods of growth and decline that the economy goes through.</p> Signup and view all the answers