Get ahead with a $300 test prep scholarship
| Enter to win by Tuesday 9/24
Chapter 11 Economics
Terms in this set (17)
national income and product accounts
method of calculating and keeping track of consumer spending, sales of producers, business investment spending, government purchases, and a variety of other flows of money between different sectors of the economy
final goods and services
goods and services sold to the final, or end, user.
intermediate goods and services
goods and services, bought from one firm by another firm, that are inputs for production of final goods and services.
gross domestic product (GDP)
the total value of all final goods and services produced in the economy during a given period, usually a year
(of a producer) the value of its sales minus the value of its purchases of inputs
the economy's total quantity of output of final goods and services
the total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year.
the value of all final goods and services produced in the economy during a given year, calculated using the prices current in the year in which the output is produced
method of calculating real GDP that splits the difference between growth rates calculated using early base years and the growth rates calculated using late base years.
GDP per capita
GDP divided by the size of the population; equivalent to the average GDP per person.
aggregate price level
a measure of the overall level of prices in the economy
a hypothetical set of consumer purchases of goods and services
a measure of the cost of purchasing a given market basket in a given year, where that cost is normalized so that it is equal to 100 in the selected base year; a measure of overall price level.
the percent change per year in a price index—typically the consumer price index
consumer price index (CPI)
measures the cost of the market basket of a typical urban American family.
producer price index (PPI)
measures changes in the prices of goods purchased by producers
a price measure for a given year that is equal to 100 times the ratio of nominal GDP to real GDP in that year