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Side ASide B
What is the total income of everyone in the economy called?
GDP (Gross domestic product)
What is the rate at which average prices are rising or falling?
What is the study of how households and firms make decisions and how they interact in markets?
What is the study of economy-wide phenomena, including inflation, unemployment, and economic...
What is the percentage of the labor labor force that is out of work called?
What measures the total income of everyone in the economy and the total expenditure on the...
GDP (gross domestic product)
For an economy as a whole, what must income must equal?
Income must equal expenditure
An economy's income is the same as its expenditure because every transaction has.. what?
Two parties: a buyer and a seller
In the circular flow diagram, households buy goods and services from firms. What does the GDP...
the total amount spent by households in the market for goods and services & it equals total...
GDP measures the flow of money in two ways. What are these two ways?
By adding up the total expenditure by households or by adding up the total income (wages, rent,...
For the economy as a whole, expenditure and income are..?
expenditure and income are always the same
What is the definition of GDP (Gross Domestic Product) ?
the market value of all final goods and services produced within a country in a given period...
What does "GDP is the Market Value" mean?
GDP uses market prices to add together many different kinds of products into a single...
(Example) When International Paper makes paper, which Hallmark then uses to make a greeting...
paper=intermediate good / card=final good
How do GDP and "goods and services" relate?
GDP includes both tangible goods (food, clothing, cars) and intangible services (haircuts,...
How does GDP and "produced" relate?
GDP includes goods and services currently produced. it doesn't include transactions...
How does GDP and "within a country" relate?
GDP measures the value of production within the geographic confines of a country