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Summary AP Macroeconomics Unit 2 latest review
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AP Macroeconomics Unit 2 latest review
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AP Macroeconomics Unit 2 latest reviewnational 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 total market value of all final goods and services
produced annually within the boundaries of the United States, whether by U.S. or
foreign-supplied resources.
intermediate goods - products that are purchased for resale or further processing
or manufacturing.
final goods - goods that have been purchased for final use and not for resale or
further processing or manufacturing.
multiple counting - wrongly including the value of intermediate goods in the gross
domestic product; counting the same good or service more than once.
value added - The value of the product sold by a firm less the value of the
produces (materials) purchased and used by the firm to produce the product.
expenditures approach - the method that adds all expenditures made for final
goods and services to measure the gross domestic product.
,AP Macroeconomics Unit 2 latest review
income approach - the method that adds all the income generated by the
production of final goods and services to measure the gross domestic product.
personal consumption expenditures (C) - the expenditures of households for
durable and nondurable consumer goods and services.
gross private domestic investment (Ig) - Expenditures for newly produced capital
goods (such as machinery, equipment, tools, and buildings) and for additions to
inventories.
net private domestic investment - gross private domestic investment less
consumption of fixed capital; the addition to the nation's stock of capital during a
year.
government purchases (G) - expenditures by government for goods and services
that government consumes in providing public goods and for public (or social)
capital that has a long lifetime; the expenditures of all governments in the
economy for those final goods and services.
net exports (Xn) - Exports minus imports
, AP Macroeconomics Unit 2 latest review
national income - total income earned by resource suppliers for their
contributions to gross domestic product; equal to the gross domestic product
minus nonincome charges, minus net foreign factor income.
indirect business taxes - such taxes as sales, excise, and business property taxes,
license fees, and tariffs that firms treat as costs of producing a product and pass
on (in whole or in part) to buyers by charging higher prices.
consumption of fixed capital - an estimate of the amount of capital worn out or
used up (consumed) in producing the gross domestic product; also called
depreciation.
net domestic product (NDP) - gross domestic product less the part of the year's
output that is needed to replace the capital goods worn out in producing the
output; the nation's total output available for consumption or additions to the
capital stock.
personal income (PI) - the earned and unearned income available to resource
suppliers and others before the payment of personal taxes.
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