Chapter 10: Measuring a Nation’s Income

When studying changes in the economy over time, economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services. In other words, economists want to study

According to the circular-flow diagram GDP

In the United States in 2009, purchases of capital equipment, inventories, and structures represented approximately

In a simple circular-flow diagram, firms use the money they get from a sale to

Total income from the domestic production of final goods and services equals

How does U.S. gross domestic product (GDP) differ from U.S. gross national product (GNP)?

GDP

The term economists use to describe a situation in which the economy's overall price level is rising is

The basic tools of supply and demand are

Much of macroeconomics attempts to explain

Which government entity computes US GDP every three months?

Real GDP is the yearly production of final goods and services valued at

Retained earnings is income that

Most goods and services produced at home

Changes in the GDP deflator reflect

Which of the following is included in the investment component of GDP?

US GDP

A recession has traditionally been defined as a period which

When economist talk about growth in the economy, they measure that growth as the

Government purchases include spending on goods and services by

GDP per person tells us the income and expenditure of the

Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?

Income generated by a nation's domestic production

GDP is defined as

According to the circular flow diagram GDP

Spots, Inc. produces ink and sells it to Write on Target, which makes pens. The ink produced by Spots, Inc. is called

Which of the following is always measured in prices from a base-year?

In the national income accounts, depreciation is called

Which of the following is included in the investment component of GDP?

In a simple circular flow diagram, households buy goods and services with the income they get from

The inflation rate is the

A form of government spending that is not made in exchange for a currently produced good or service is

The income that households and non corporate businesses receive is called

What word do economists use to refer to the purchase of goods and services that will be used in the future to produce more goods and services?

National income is defined as

The GDP deflator is the ratio of

The percentage change in the price level from one period to another is called

recessions are not associated with which of the following?