Flashcards
AP Macroeconomics: Chapter 14 - The National Economic Accounts
Flashcards do conjunto (21)
- 1Who is responsible for calculating the GDP?National Economic Accounts (NEA)
- 2What does the GDP measure?The dollar value of production within the nation's borders
- 3How does BEA keep make "flash" estimates of GDP?A small group of statisticians and analysts keep track of production and sales over a wide variety of goods and services.
- 4What are the 4 expenditures?Consumer, government, investment, exports & imports
- 5What is the formula for GDP?GDP = C + I + G + X
- 6Another name for real GDP?Constant-dollar GDP
- 7Another name for nominal GDP?Current dollar GDP
- 8Underground economyAnything households do for themselves and does not go through a market
- 9What are other things that are not counted in the GDP?Second hand sales
Transactions that are purely financial
Intermediate sales - 10GNPGDP except also includes production by American workers abroad and excludes production by foreign workers in America
- 11National Income (NI)Measures income earned by households and profits earned by firms after adjusting for depreciation and indirect business taxes.
Also known as income earned by all FOPs. - 12Personal Income (PI)Income received by households only
- 13Disposable Personal Income (DPI)Income of households after taxes have been paid. Derived from subtracting personal taxes from PI. Also represents discretionary income of households (they can save/spend)
- 14—3. B
4. C - 15—E
- 16—C
- 17—12. E
13. C
- 18—14. A
15.C
- 19—If production and prices rise while population stays constant then all three statistics will rise.
- 20Is GDP an under- or over-statement?
- 21Explain the difference between nominal GDP, real GDP, and GDP per capita.Nominal GDP measures the production of goods and services within a nation's borders. Nominal GDP could increase because of an increase in output or an increase in the prices of the good sand services produced. Real GDP measures production, but adjusts for any price changes. Real GDP does not change if prices change because it values current output in terms of prices of the given base period. Only one thing can cause the real GDP to change and that is a change in output. GDP per capita is production per person.
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- FlashCards sobre AP Macroeconomics: Chapter 14 - The National Economic Accounts, criado por bxyp em 24-02-2015.
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