~: expenditures made by households (excluding the purchase of a new house)
Investment
~: Final goods and services purchased by business firms (equipment for production and new
buildings), changes in inventories (which is thee difference between production and sales), and
residential construction purchased by households.
Government Purchase
~: Spending by the federal, state, and local governments
Net Exports
~: Exports-imports
Real GDP
, Elscores 8/18/2024 6:16:34 PM
~: Value of economic output adjusted for inflation or deflation
Nominal GDP
~: GDP evaluated at current market prices which doesn't account for inflation/deflation
intermediate goods
~: a good that is transformed in the production process
EX: flour gets turned into bread, therefore it is an intermediate good
final goods
~: finished products purchased by the final user
U.S. GDP 2016 (2nd quarter)
~: $18.4 Trillion
GDP per capita
~: Measure of average income per person in a country per year
U.S. GDP per capita 2016
~: $55,800
Money $$$$$$$$$
~: An asset that does each of the following:
1.) Medium exchange used for purchases
, Elscores 8/18/2024 6:16:34 PM
2.) A store of value
3.) Unit of accounting
4.) Standard of deferred payment
M1
~: Cash and checkable deposits
M2
~: M1+ Savings Accounts
Interest Rate
~: rate at which money is borrowed and lended
FED's Dual Mandate
~: To promote effectively the goals of 1)maximum employment, 2)stable prices, and moderate
long-term interest rates
Monetary Policy
~: Changes in the interest rates,M1, and M2 to achieve dual mandate goals
Fiscal Policy
~: Changes in federal taxes and expenditures. Controlled by President and Congress
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Examify. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
