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ECN 221 Ch 15
Measuring a Nation's Income
Question | Answer |
---|---|
microeconomics | the study of how households and firms make decisions and how they interact in markets |
macroeconomics | the study of economy wide phenomena, including inflation, unemployment, and economic growth |
gross domestic product (GDP) | the market value of all final goods and services produced within a country in a given period of time |
consumption | spending by households on goods and services, with the exceptionnof purchases of new housing |
investment | spending on capital equipment, inventories, and structures, including household purchases of new housing |
government purchases | spending on goods and services by local, state, and federal governments |
net exports | spending on domestically produced goods by foreigners(exports) minus spending on foreign goods by domestic residents (imports) |
nominal GDP | the production of goods and services valued at current prices |
real GDP | the production of goods and services valued at constant prices |
GDP deflator | a measure of the price level calculated as the ration of normal GDP to real GDP times 100 |