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Related Flashcards
Cards In This Set
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What is GDP
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Gross Domestic Product- a NIPA measures track production, income and consumption in a nations economy.
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What are the three components of GDP?
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1) Must be a final input
2) Must have been made in the current year
3) Has to be an output produced within borders.
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What are the four sectors of GDP?
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1) Personal consumption expenditures (C)
2) Gross investment (I)
3) Government purchases of goods (G)
4) Net exports and imports (X-M)
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What is nominal GDP?
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Expressed in current prices for that period.
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What is the price index?
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Set of statistics that allows economists to compare prices over time.
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What are the four limitations of GDP?
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1) Not very accurate and timely
2) Does not count non-market activities
3) Illegal transactions not accounted
4) Benefits usually not reported but bads are.
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What is the business cycle? and its four phases?
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Fluctuations or changes in the market system activity. Expansion, Peak, Contraction and trough.
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What are the four influences of the Business Cycle?
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1) Business investment
2) Money and credit
3) Public Expectations
4) External factor
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List the three indicators of the business cycle.
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1) Leading indicator, anticipates
2) Coincidental indicator, current
3) Lagging indicator, after the business cycle has changed.
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