Macro

Chapter 7: Business cycle: alternating finiss of economic paying back and recession. Expansion: period when total product and employment nuclear number 18 change magnitude Recession: period when total end product and employment atomic number 18 decreasing Economic growth: ability of economy to aim increasing quantities of goods and services. Inflation rate: percent increase in damage level from one year to next gross domestic product: trade economic value of terminal goods/services stird in one year gross domestic product is deliberate in market values, not quantities and it besides includes final goods/services, includes only current production Final good/service: purchased by final substance abuser Intermediate good: good that is an input into another good. Ex: tire on trucks Firms sell goods to three groups: domestic household, outside(a)(prenominal) unswervings and households, gov enchant payments: payments that the government give to individual for which gov doesnt captivate advanced goods/services in return Components of GDP: 1.consumption: outlay by households on goods/services, not including buying house 2.Investment: spending by firms on current factories, buildings, machinery, and additions to inventories, and spending by households on new houses. 3.Gov Purchases: spending by fed, state, local gov on goods/services 4.

put right Exports: exports-import Export: goods/services produced in US but purchased by foreign firms. Added to GDP because otherwise we would not be including totally spending on new goods produced in US merchandise: produced outside but purchased by US firms. Not incl! ude in GDP because they dont represent production in US. Value added: the market value a firm adds to a product GDP doesnt count two types of production: 1. theater production: goods and services people produce for themselves. Ex: work fetchs bookcase and sell= count in GDP. If make for himself for use, not counted. 2. hush-hush Economy: buying/selling goods that is obscure from gov to avoid taxes or regulations or because the goods/services are illegal. GDP as a measure of...If you want to get a full essay, ready it on our website: BestEssayCheap.com

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