Study sets, textbooks, questions
Upgrade to remove ads
ECON 2105 Chapters 1-4
Terms in this set (8)
Define GDP and distinguish between final and intermediate good. Provide Examples.
GDP is the market value of all final goods produced in a country in a time period. Final goods are goods used by their final consumer, and intermediate goods are goods that are bought by a firm and sold to another firm. Example of final good is a car. Example of intermediate good is a tire before it goes on the car.
Why does GDP equal aggregate income and aggregate expenditure?
Because GDP is the measurement of the total value of all final goods and so is income and expenditure.
What is the distinction between gross and net?
Gross is the value before subtracting depreciation and net is the value after subtracting depreciation.
What is the expenditure approach to measuring GDP?
It measures GDP as the sum of consumption expenditures, investments, and government expenditure on goods/services.
What is the income approach to measuring GDP?
It measures GDP by summing the incomes that firms pay households for their services.
What adjustments must be made to total income to make it equal to GDP?
What's the difference between nominal and real GDP?
Nominal GDP is the value of goods produced in a year valued at the price of that year. Real GDP is the value of goods produced in a year valued at the price of the base year.
How is real GDP calculated?
Recommended textbook explanations
Principles of Economics
N. Gregory Mankiw
Online Learning Center to accompany Essentials of Investments
Alan J. Marcus, Alex Kane, Zvi Bodie
Essential Foundations of Economics
Michael Parkin, Robin Bade
Krugman's Macroeconomics for AP*
David Anderson, Margaret Ray
Sets found in the same folder
Problem sets 1.1-1.5
Sets with similar terms
Economics Chapter 7:
FTC1 Chapter 5 and Chapter 7
AP Econ: Chapter 21 Vocab
Other sets by this creator
NPTE - GERI
Other Quizlet sets
Final Exam Quiz 1
Davis Edge Leadership and Management Quiz