Term
Gross Domestic Product (GDP)
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Definition
Total market value of all final goods and services by producers located within a country |
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Definition
| goods and services produced for final use |
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goods produced by one firm to be used by another firm in further processing. not counted in GDP ex. Tires sold to automobile factory |
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| Gross national product (GNP) |
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Definition
| Total market value of all final goods and services produced by a countries citizens, regardless of where it is produced |
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Term
Define: GDP = C + I + G + (EX - IM) |
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Definition
The Expenditure Approach GDP: Gross domestic product = C: personal consuption of households I: spending by firms and households on capital G: Government consuption/investment (EX - IM): Net exports, exports minus imports |
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Components of Personal Consumption Expenditures (C) |
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Definition
Durable Goods: last along time nondurable Goods: used up quickly Services: dont involve production |
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Components of Gross Private Domestic Investment (I) |
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Definition
Nonresidential Investment: expenditures of firms Residential Investment: new houses/apartment buildings Change in business inventories |
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| Current price you pay for goods and services |
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| GDP measured in current dollars |
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Definition
| nominal GDP adjusted for price changes |
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| part of the economy where income is made but not reported therefore not calculated in the GDP |
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Term
| gross national income (GNI) |
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Definition
| GNP converted into dollars using an average of currency exchange rates over several years adjusted for inflation |
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