Ch 12 - The National Economic Accounts

is the primary statistic for measuring the overall performance of the economy.

gathers the change in inventories in with business spending on plant and equipment and residential construction to get what it calls investment.

is the total amount of money spent on goods and services which are used to satisfy needs and wants.

are people who are responsible for collecting information about the production & price of certain goods, which is how GDP is calculated.

are which will be incorporated and sold in the final product by a firm.

should not be included in the GDP calculation as they are goods from outside the country’s borders.

group of statistics which measure various aspects of economy’s performance.

are economic transactions which are illegal as the goods and services are unlawful.

In order to make ________ calculation easier on the government, the BEA categorises all goods and services which were sold to households and refers to them as consumption expenditure.

are subtracted from exports to get "net exports.

does not account for factors such as the differences between countries and traffic and congestion, even though these two countries could have the exact same GDP.

is also calculated per capita, meaning that it is divided by the countrys capital to get the final answer.

group of statistics which measure various aspects of economys performance

dollar value of production within a countrys citizens

is the total amount of money spent on goods and services which are used to satisfy needs and wants

the income of households after taxes have been paid

Is the total of government spending which includes all government consumption, transfer payments, and investments.

This is referred to as the spending on purchases such as land, machinery, production inputs, or infrastructure.

This is the cost of goods and services which are produced in a country and sold abroad (exports). However, some expenditure made by households or governments and such could be on goods and services from abroad (imports).

GDP = C + I + G + X

Is the method of converting income stream into an indicator of market value.

It is similar to the income approach, however, instead of calculating who earned income during the production process, the value added approach considers how much the final retail price was added by each producer or industry

is given in constant prices and refers to the volume value of GDP. The year where prices to calculate GDP are taken from is called a base year.

are economic transactions which are illegal as the goods and services are unlawful.

GDP/Population