Study guide
Macroeconomics Final Key Terms Study Guide
- Course
- Macroeconomics
- Institution
- Tulane University
Macroeconomics Final Exam review of all the course's terms.
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GDP – ( total output) total value of all final goods and services produced for the marketplace during a given period, within the nation’s borders. Intermediate goods – goods used up in the process of producing something else (don’t count in GDP) Final goods – a product sold to its final user Flow variable – measures the rate of production (GDP is one) Nominal variable – measured without in dollars without adjustment for the dollar’s changing value Real variable – adjusted for the dollar’s changing value Annual growth rate – for GDP is focused on and reported quarterly – so it is annualized. Transfer Payments – a government payment to a person that is not a good or service, not associated with the production of goods or services. Is not included in GDP (social security, Factor payments – payments to the owners of resources that are used in production (interest payments, rent, wages, salaries, and entrepreneurship) Financial transactions – trading of stocks or bonds (not in GDP) Expenditure approach – to measure GDP = C + I + G + NX Capital stock – when you add up all the values of capital goods u get it. Net investment – total investment – depreciation Depreciation – the capital that is used up during the year (not in GDP) Government outlays – some gov ernment purchases and transfer payments and interest on national debt… that are not included in GDP. Value added – a firm’s contribution the revenue a firm receives for its output (minus) the cost of the intermediate goods it buys Value added approach – GDP = sum the values added by all firms in the economy. Factor payment approach – GDP = sum of the factor payments earned by all households in the economy / or total income earned in the economy / or total expenditure Full employment – when cyclical une mployment is reached to zero Potential output – the output we could have produced if the economy were operating at full employment. Slump – a period during which real GDP is below potential and/or the employment rate is below normal Price level – average of the prices of all goods and services in the economy Index numbers – how price levels are calculated at reported Price index – a measure of the price level Index – a series of numbers used to track a variable’s rise or fall over time…….. (Value of measure in current time period / value of measure in the base period) x 100 GDP deflator – a price index used to track rise and fall in the price level over time . CPI – an index of the cost, over time, of a market basket of goods purchased by a typical household. Cost of market basket in current year/cost of market basket in base yearThe benefits of buying summaries with Stuvia:
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