Create an account
GDP: (Gross Domestic Product)
The total market value of all final goods and services produced within a given period by factors of production located within a country.
Goods that are produced by one firm for use in further processing by another firm.
Not counted in GDP
Used goods, paper assets, intermediate goods, goods not used w/in a yr; output aboard by domestically owned factors or production, output produced by US citizens living in other countries, transfer payment, interest
The total income of households.
The income recieved by households after paying social insurance taxes but before paying personal income taxes.
Disposable personal income
Personal income- personal income taxes. The amount that households have to spend or save.
GNP (Gross national product)
The total market value of all final goods and services produced within a given period by factors of production owned by a country's citizens, regardless of where the output is produced.
US: GDP < GNP
The total value of all newly produced capital goods (plant, equipment, housing and inventory) produced in a given period
Method of calculation GDP (measures total amount spent on all final goods/services during time period)
Households personal consumption (C)
A major component of GDP. Expenditures by consumers of goods and services.
Gross Private Domestic Investment (I)
Total investment in capital. The purchase of new housing, plants, equipment, and inventory by the private (non government) sector.
Change in business inventories
Amount by which firms' inventories(goods that firms produce now but intend to sell later) change during a period of time.
Government consumption and gross investment (G)
Expenditures by federal, state and local government for final goods and services.
Does not include gov transfer payments of interest payments on national debt (not payment for final good/service)
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together