Macro Chapter 5

To measure changes in the value of goods and services produced in the economy is a primary use for

The market value of all final goods and services produced in an economy in a given year.

The gross domestic product provides an estimate of society's evaluation of the relative worth of goods and services because it:

To avoid multiple counting in national income accounts, only:

Gasoline used by an insurance agent visiting clients would be an example of

A check for $100 sent by a parent to a daughter at college is an example of

Spending on meals by consumers at restaurants would be included in the ______ approach to GDP

The value of _________ traded in a given year is excluded from the calculation of GDP because they make no contribution to current production of goods and services.

The value of capital goods and buildings that are produced that year plus residential construction and changes in business inventories.

Net exports is a ______ number when a nation's exports of goods and services exceed its imports.

When gross investment is positive, net investment:

In an economy experiencing declining production capacity, net private domestic investment is:

Occurs when the consumption of private fixed capital exceeds private domestic investment.

The value of a firms output minus the value of intermediate goods purchased from other firms.

The GDP deflator or price index equals:

GDP measured using current prices is called:

Changes in real GDP is one major measure of

A supply factor in economic growth would be an increase in

Demand factor in economic growth

A major argument for economic growth is that it:

An antigrowth view states that there may be a significant trade-off between productivity and:

The fact that large producers may be able to use more efficient technologies than smaller producers.

The skills and knowledge that enable a worker to be productive.

The national accounts that measure the overall production and income of the economy for the nation as a whole

The total market value of all final goods and services produced annually within the borders of the United States, whether by U.S. or foreign-supplied resources

Products that are purchased for resale or further processing or manufacturing

Products, capital goods, and services that have been purchased for final use and not for resale or further processing or manufacturing

Expenditures by households for durable goods, nondurable goods, and services

Expenditures for newly produced capital goods (such as plant and equipment) and for additions to inventories

Government expenditures on final goods, services, and publicly owned capital

Exports minus imports

Gross domestic product measured in terms of the price level at the time of the measurement (i.e., GDP that is unadjusted for inflation)

Gross domestic product measured in terms of the price level in a base period (i.e, GDP that is adjusted for inflation)

The expansion of real GDP (or real GDP per capita) over time

Real output divided by population

Real output per hour of work

The percentage of the working-age population actually in the labor force

The bookkeeping of the supply-side elements that contribute to changes in real GDP

Public and private capital goods that buttress an economy's production capacity (for example, highways, bridges, airports, public transit systems, wastewater treatment facilities, educational facilities, and telecommunications systems that complement private capital)

Reductions in per-unit production costs that result from increases in the size of markets and firms

New and more efficient methods of delivering and receiving information through use of computers, fax machines, wireless phones, and the internet

New firms focused on creating and introducing particular new products or employing specific new production or distribution methods

A firm's output increases by a larger percentage that the increase in its inputs

Increases in the value of a product to each user, including existing users, as the total number of users rises

Achieving greater productivity and lower average total costs through gains in knowledge and skill that accompany repetition of a task