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13.7 KEY TERMS
| interactive activity
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.
Question
National income and product accounts (national accounts) Final goods and services Intermediate goods and services Gross domestic product (GDP) Value added Aggregate output Real GDP Nominal GDP Chained dollars GDP per capita Aggregate price level Market basket Price index Inflation rate Consumer price index (CPI) Producer price index (PPI) GDP deflator | the percent change per year in a price index— a hypothetical set of consumer purchases of goods and services. 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; also referred to as national accounts. 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. goods and services, bought from one firm by another firm, that are inputs for production of final goods and services. goods and services sold to the final, or end, user. method of calculating real GDP that splits the difference between growth rates calculated using early base years and the growth rates calculated using late base years. (of a producer) the value of its sales minus the value of its purchases of intermediate goods and services. the economy’s total quantity of output of final goods and services. a measure of the cost of the market basket of a typical urban American family. 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 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. GDP divided by the size of the population; equivalent to the average GDP per person. the total value of all final goods and services produced in the economy during a given period, usually a year. a measure of changes in the prices of goods purchased by producers. a measure of the overall level of prices in the economy. S price measure for a given year that is equal to 100 times the ratio of nominal GDP to real GDP in that year. |