national income accounting
measures the economies overall performance
bureau of economic analysis
compiles the national income and product accounts for the U.S. economy
gross domestic product
the dollar amount of all final goods and services produced within a country's borders in a year.
Goods purchased for resale or for use in producing another good or service.
Goods to be sold to the consumer for final use, these goods are not for resale.
wrongly including the value of intermediate goods in the gross domestic product; counting the same good or service more than once
the gross value of the product minus the costs of raw materials and energy.
to view GDP as the sum of all the money spent in buying it
view GDP in terms of income derived or created from producing it
personal consumption expenditures
C- spending by households on goods and services.
gross private domestic investment
Ig- total investment by businesses on plant, equipment, and inventory goods before depreciation.
net private domestic investment
In - total business investment (Ig) minus depreciation (D). Ig - D = In
(G) expenditures by government for goods and services that government consumes in providing public goods and for public (or social) capital that has a long lifetime; the expenditures of all governments in the economy for those final goods and services
difference between exports (X) and imports (IM); indicates the difference between what we sell to foreigners and what we buy from them; abbreviated X - IM
corporate income taxes
a tax corporation pays on its profits. Third largest contributer of government revenue.
a part of a company's profit that is divided among the people with shares in the company
undistributed corporate profits
monies saved by corporations to be invested later in new plants and equipment
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
the total value of all income in a nation (wages and profits and interest and rents and pension payments) during a given period (usually 1 yr)
consumption of fixed capital
the allowance for capital that has been "consumed" in producing the year's GDP; depreciation
net domestic product
NDP = Net Domestic Product. NDP is GDP adjusted for depreciation. GDP as a measure of total output gives an exaggerated sense of output. NDP = GDP - D
refers to salaries and wages as well as investment income and government payments to individuals
amount left after deductions (e.g. taxes) have been taken from your gross pay.
the GDP measured in terms of the price level at the time of measurement (unadjusted for inflation)
gross domestic product (GDP) adjusted to account for changes in currency values and price changes
an index that traces the relative changes in the price of an individual good (or a market basket of goods) over time