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| 256673215 | BEA | Also known as the Bureau of Economic Affairs in the Commerce Department. Is an agency that compiles National income and product accounts (NIPA) and publishes National income accounting values every quarter. |  |
| 256673216 | Final Goods | Include consumption goods, capital goods and services that are purchased by the final consumer, Included In GDP. |  |
| 256673220 | GDP | The total market value of all final goods and services produced annually in the boundaries of a country. Monetary measure. Excludes intermediate goods and non-production transactions. |  |
| 256673217 | National income accounting | The measurement of the national economy's performance, dealing with the overall economy's income and output usually done at regular intervals(quarters). In the U.S., this is done by the BEA (Bureau of Economic Affairs, part of Commerce Dept.) | |
| 256673224 | value added | The total market value of a firms output minus the value of the inputs the firm has bought from others. |  |
| 256673218 | NIPA | (National income and product accounts) Measures economic activity, produces GDP, compiled by BEA (Bureau of Economic Affairs) | |
| 256673223 | Multiple counting | __________ ___________ would distort the GDP measure for a nation, and that is why intermediate goods are not included in GDP. Can also be avoided by calculating value added at each stage. |  |
| 256673219 | aggregate output | The economy's total production of final goods and services for a given time period in dollars. Real GDP is the numerical measure of __________ _________ typically used by economists | |
| 256673222 | Intermediate goods | Goods that are purchased for resale of for other further processing or manufacturing - NOT included in any GDP figuring. |  |
| 256673221 | Monetary measure | GDP is useful because it is a __________ ________ , which allows us to compare the relative values of the goods and services produced in different years. | |
| 256673226 | Public transfer payments | Are the social security payments, welfare payments, and veterans' payments that the government makes directly to households. |  |
| 256673225 | Nonproduction transactions | Transactions of goods and servies that have nothing to do in the generation of a final good, 3 types : Public transfer payments, private transfer payments, and stock market transaction. | |
| 256673227 | private transfer payments | Gifts, inheritances, charitable contributions that are not included in GDP. |  |
| 256673228 | stock market transaction | The Buying and selling of stocks is analagous to swapping paper, making this a nonproduction transactions Not included in GDP. | |
| 256856642 | Residential construction | Apparently this is very important to note. The building of houses or ________________ ________________ is an investment NOT consumption because the houses can earn income when rented or leased. |  |
| 256673230 | Expenditure approach | Also known as the output approach(One of 2 ways to look at GDP). GDP viewed as the sum of all money spent. Calculated by taking Consumption (C) + Gross Private Domestic Investment(Ig) + (Net Exports - Net Imports), symbolically C + G + I + (X-M) | |
| 256673229 | Secondhand sales | Sales of used goods; category of activity not included in GDP computation |  |
| 256673231 | Income approach | Also known as the earnings/allocations approach(One of 2 ways to look at GDP). GDP viewed as the sum of the income derived or created. Includes Wages+Salaries +Rents + Interest + Proprietors Income + Corporate Profits + Taxes on Production and Imports. | |
| 256856643 | personal consumption expenditures | A major component of GDP(from expenditure point of view): expenditures by consumers on goods and services consist of three things: durable goods, nondurable goods, and services, symbolized by C | |
| 256856644 | Gross private domestic investment | A major component of GDP from expenditure POV. Includes all final purchases of machinery, equipment, tools, construction and change in inventories. Symbolized by Ig. | |
| 256856645 | Disinvesting | When the economy uses more capital than it's producing, in other words gross investment is less than depreciation. Happened during Great Depression. |  |
| 256856646 | net private domestic investment | This ncludes only investment in the form of ADDED capital (gross investment minus depreciation) | |
| 256856647 | depreciation | In the context of net private domestic investment, this is the amount of capital used up in the course of a year. | |
| 256856648 | Government Purchases | Spending by federal, state, and local governments on goods and services. Includes goods and services bought and expenditures for publicly owned capital (schools,highways, roads, etc,). An important component of GDP from expenditure POV. |  |
| 256856649 | Net Exports | The value of a nation's exports minus the value of its imports; also called the trade balance, important component of GDP from expenditure POV. Symbolized by Xn or (X-M) where X are exports and M is imports. | |
| 256856650 | Compensation of Employees | Includes wages, salaries, and various supplements—employer contributions to social insurance and pension funds, for example—paid to households by firms and by the government. Largest part of GDP from income POV. | |
| 256856651 | Rents | Consists of income received by households and business that supply PROPERTY resources. Examples include monthly payments made to landlords or leases. We use the net ______ in national income accounts | |
| 256856652 | Interest | The money paid by private businesses to the suppliers of loans used to purchase capital. Also includes ________ on savings deposits, certificates of deposits(CD's) and corporate bonds. |  |
| 256856653 | Proprietors Income | Money earned by sole proprietors or partners in unincorporated businesses. Income flows to the proprietors. | |
| 256856654 | Corporate Profits | Divided into 3 categories: corporate income taxes, Dividends, and Undistributed corporate profits. Simply it is the earnings of corporations. |  |
| 256856655 | Corporate Income taxes | Taxes that are levied on corporations net earnings and flow to the government. | |
| 256856656 | Dividends | Distribution of the net profit of a corporation that is paid to stockholders AFTER taxes. | |
| 256856657 | Undistributed Corporate profits | Any after-tax profits that are not distributed to shareholders are saved, or retains, by corporations to be invested later in new plants and equipment. Also called retained earnings. | |
| 256856658 | taxes on production and imports | a national income accounting category that includes such taxes as sales, excise, business property taxes, and tariffs which firms treat as costs of producing a product and pass on (in whole or in part) to buyers by charging a higher price | |
| 256856659 | national income | Total income earned by resource suppliers for 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. Should be less than GDP, Distinguish between national and domestic(Pg.133 bottom right). Can also be derived from NDP by subtracting statistical discrepancy and adding net foreign factor income. | |
| 256856660 | Net Foreign Factor Income | The income from foreign domestic factor sources minus foreign factor incomes earned domestically. This is subtracted from National Income because it must be converted into a domestic figure for GDP calculations. See Pg. 134(I have the book, just ask if you want to borrow it, I am happy to give it). | |
| 256856661 | statistical discrepancy | the discrepancy between calculations of GDP using the spending(expenditure) approach and the income approach due to unreported data or errors in data collection. | |
| 256856662 | consumption of fixed capital | Is the huge depreciation charge made against Private and publicly owned capital each year. It is the allowance for capital that has been "consumed" in producing the year's GDP. It does not add to income etc, so it can't be included in national income or GDP and is just ADDED to National Income (... ask me if you need help understanding this). | |
| 256856663 | net domestic product | the value of a nation's total output (GDP) minus the total value lost through wear and tear on machines and equipment(depreciation), this measure makes up for the allowances for replacing capital goods. Abbreviated NDP | |
| 256856664 | personal income | Abbreviated PI, Includes ALL income received, differs from national income because of taxes, transfer payments. To get this you must subtract income that is earned but not received but add the income that is received but not earned. READ this CAREFULLY. This includes statistical discrepancy |  |
| 256856665 | Disposable income | Abbreviated DI, this is personal income minus personal income taxes. The amount that households have to spend or save. |  |
| 256856666 | Price Index | An index that traces the relative changes in the price of an individual good (or a market basket of goods) over time, example is consumer ______ ________. |  |
| 256856668 | nonmarket activities | Services that have potential economic value but are performed without charge, understates GDP becaue it does not account for unpaid work, only exception is food farmers produce and eat themselves. | |
| 256856669 | Leisure | The general decrease in the workweek(in the West) from an average of 54 hours a week to 35 hours from 1900 has increased this, something that GDP does not account for. |  |
| 256856670 | Underground economy | Buying and selling of goods and services that is concealed from the government to avoid taxes or regulations or because the goods and services are illegal or because you are a bum who doesn't want to pay taxes but still lives in the country. Understates GDP by around an estimated 8%. |  |
| 256856671 | Census Bureau | The bureau of the Commerce Department responsible for taking the census, is where the Bureau of Economic Affairs(BEA) actually gets most of its data to compile the NIPA (National income and product accounts) and carry out national accounting. | |
| 256856672 | Environment | The social costs on the ___________ (pollution, toxic waste, noise, congestion) reduce our economic well being. GDP does not account for these negative social costs and the money actually taken to fix these problems further overstates GDP. |  |
| 256856673 | net rent | Is gross rental income - depreciation of rental property, the value that is used in national accounts. | |
| 257022951 | nominal GDP | GDP that is based on prices that prevailed when the output was produced, also called unadjusted GDP because it is does not account for changes in relative pricing. This must be inflated when prices fall and deflated when prices rise. | |
| 257022952 | market basket | representative collection of goods and services used to compile a price index |  |
| 257022953 | consumer price index | Abbreviated CPI, measures the change in price over a period of time of some 400 specific retail goods and services used by the average urban household. |  |
| 257022954 | Distributed | GDP does not account for the composition of goods produced or how they are ___________. Another way GDP does not fully account for economic well being. |  |
