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19 terms

AP Macro ch 5 terms

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national-income accounting
The techniques used to measure the overall production of the economy and other related variables for the nation as a whole.
Gross domestic product
the dollar amount of all final goods and services produced within a country's borders in a year.
Per capita GDP
The dollar value of GDP divided by total population; average GDP
Intermediate goods
goods used in the production of final goods
value added
the market value a firm adds to a product at each stage in the production process
Nominal GDP
the GDP measured in terms of the price level at the time of measurement (unadjusted for inflation)
real GDP
gross domestic product (GDP) adjusted to account for changes in currency values and price changes
base period
year used as a point of comparison for other years in a series of statistics
Inflation
an increase in the average level of prices of goods and services
Production Possibilities
The alternative combinations of final goods and services that could be produced in a given time period with all available resources and technology
depreciation
decrease in value of an asset due to obsolescence or use
net domestic product
gross domestic product minus depreciation
gross investment
total investment by businesses on plant, equipment, and inventory goods before depreciation.
net investment
gross investment minus depreciation
net exports
value of exports minus the value of imports
National Income NI
total income earned by everyone in the economy
Personal Income PI
the earned and unearned income available to resource suppliers and others before the payment of personal taxes
Disposable Income DI
personal income - personal taxes; income for expenditures and savings
saving
part of disposable income not spent on consumption