7.5 KEY TERMS

Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.

  1. Inventories
    National income and product accounts (national accounts)
    Aggregate price level
    Private savings
    Government purchases of goods and services
    Financial markets
    Disposable income
    Factor incomes
    Government borrowing
    Net exports
    Consumer spending (consumption)
    Price index
    Final goods and services
    Gross domestic product (GDP)
    Stock
    Investment spending (investment)
    Nominal GDP
    GDP per capita
    Aggregate output
    Real GDP
    Non-factor payments
    Consumer price index (CPI)
    Government transfers
    Value added
    Aggregate expenditure
    Intermediate goods and services
    Industrial producer price index (IPPI)
    Inflation rate
    GDP deflator
    Chained dollars
    Market basket
    Bond
    a price measure for a given year that is equal to 100 times the ratio of nominal GDP to real GDP in that year.
    the total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year.
    (of a producer) the value of a producer’s sales minus the value of its purchases of intermediate goods and services.
    a single number that represents the overall price level for final goods and services in the economy.
    an index that measures changes in the prices of goods purchased by producers.
    total purchases by federal, provincial, and local governments on goods and services.
    the sum of consumer spending, investment spending, government purchases of goods and services, and exports minus imports, is the total spending on domestically produced final goods and services in the economy.
    incomes earned by factors of production, which include wages, interest, rent dividends, and profits.
    the difference between the value of exports and the value of imports. A positive value for net exports indicates that a country is a net exporter of goods and services; a negative value indicates that a country is a net importer of goods and services.
    stocks of goods and raw materials held to facilitate business operations.
    the difference between the prices paid for final goods and services and the amount received by factors of production, which include net indirect taxes and capital depreciation.
    method of calculating real GDP using the average between the growth rate calculated using an early base year and the growth rate calculated using a late base year.
    payments by the government to individuals for which no good or service is provided in return.
    income plus government transfers minus taxes; the total amount of household income available to spend on consumption and to save.
    GDP divided by the size of the population; equivalent to the average GDP per person.
    the total quantity of final goods and services the economy produces for a given time period, usually a year. Real GDP is the numerical measure of aggregate output typically used by economists.
    the annual percent change in a price index—typically the consumer price index. The inflation rate is positive when the aggregate price level is rising (inflation) and negative when the aggregate price level is falling (deflation).
    method of calculating and keeping track of consumer spending, sales of producers, business investment spending, government purchases, and a variety of other flows of money between different sectors of the economy.
    the value of all final goods and services produced in the economy during a given year, calculated using the prices (current) in the year in which the output is produced.
    a share in the ownership of a company held by a shareholder.
    a hypothetical consumption bundle of consumer purchases of goods and services, used to measure changes in overall price level.
    goods and services sold to the final, or end, user.
    goods and services—bought from one firm by another firm—that are inputs for production of final goods and services.
    the total value of all final goods and services produced in the economy during a given period, usually a year.
    household spending on goods and services from domestic and foreign firms.
    a legal document based on borrowing in the form of an IOU that pays interest.
    spending on productive physical capital—such as machinery and construction of buildings—and on changes to inventories.
    disposable income minus consumer spending; disposable income that is not spent on consumption but rather goes into financial markets.
    a measure of the cost of purchasing a given market basket in a given year, where that cost is normalized so that it is equal to 100 in the selected base year; a measure of overall price level.
    the banking, stock, and bond markets, which channel private savings and foreign lending into investment spending, government borrowing, and foreign borrowing.
    a measure of prices; calculated by surveying market prices for a market basket intended to represent the consumption of a typical Canadian family. The CPI is the most commonly used measure of prices in the Canada.
    the total amount of funds borrowed by federal, provincial, and local governments in financial markets to buy goods and services.
[Leave] [Close]