Economics Chapter 7

GDP- is the total market value of all final goods and services produced in an economy in a one-year period

is spending by households on goods and sercices

is spending for the purpose of additional production

is goods and services that government buys.

payments to indviduals that do not involve production by those individuals.

spending on goods and services produced in t United States that foreigners buy (exports) minus goods and services produced abroad that U.S citizens buy (imports)

a balance sheet of an economy's stock of assets and liablilities.

goods and services purchased for their final use.

products used as an input in the production of some other product.

is the increase in value that a firm contributes to a product or service.

the decrease in an asset's value

NDP- is GDP-depreciation

Gross investment less depreciation.

GNP- the aggregate final output of citizens and businesses of an economy in a one year period.

the income from foreign domestic factor sources minus foreign factor income earned domestically.

GDP calculated at existing prices

nominal GDP adjusted for inflation.