Card Set Information
disposable income that is not spent on consumption.
The banking, stock, and bond markets, which
channel private savings and foreign lending into investment spending,
government borrowing, and foreign borrowing
share in the ownership of a company held by a
borrowing in the form of an IOU that pays
total value of all
final goods and services
produced in the economy
CS + IS + GP + X - IM
GDP can be calculated three ways
of all producers
C + I + G + X - IM
factors of production
total value of the final goods and services
produced in the economy during a base year
all final goods and services produced in the
economy during a given year, calculated using the prices current in the year in
which the output is produced.
calculating changes in real GDP
using the average between the growth rate calculated using an early base year
and the growth rate calculated using a late base year.
measure of average GDP per person
measure of the overall level of prices in the
ratio of the current cost of that market basket to the cost in a base year,
yearly percentage change in a price index,
consumer price index
measures the cost of the market basket of a
typical urban American family.
which measures the price level by calculating
the ratio of nominal to real GDP.