Macro

Chapter 7: Business cycle: alternating completions of economic restoration and recession. Expansion: period when total drudgery and employment atomic number 18 change magnitude Recession: period when total production and employment atomic number 18 decreasing Economic growth: ability of economy to reveal increasing quantities of goods and services. Inflation rate: percent increase in damage level from one year to next gross domestic product: commercialise economic value of terminal goods/services scored 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) unassailables and households, gov manoeuver payments: payments that the government gi ve to individual for which gov doesnt captivate newborn-made 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 new 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.

earn Exports: exports-import Export: goods/services produced in US but purchased by foreign firms. Added to GDP because otherwise we would not be including solely spending on new goods produced in US moment: produce d outside but purchased by US firms. Not inc! lude in GDP because they dont represent production in US. Value added: the market value a firm adds to a product GDP doesnt count both types of production: 1. theater production: goods and services people produce for themselves. Ex: work bes bookcase and sell= count in GDP. If make for himself for use, not counted. 2. hush-hush Economy: buying/selling goods that is conceal 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: OrderCustomPaper.com

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