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.

Question

National income and Product Accounts
Product account
National account
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
Producer price index
GDP deflator
a measure of the overall level of prices in the economy
goods and services, bought from one firm by another firm, that are inputs for production of final 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
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
(of a producer) the value of its sales minus the value of its purchases of intermediate goods and services
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
a hypothetical set of consumer purchases of goods and services
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
the percent change per year in a price index—typically the consumer price index.
the total value of all final goods and services produced in the economy during a given period, usually a year
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
a measure of the cost of the market basket of a typical urban American family
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 period, usually a year
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 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
GDP divided by the size of the population; equivalent to the average GDP per person
goods and services sold to the final, or end, user
a measure of changes in the prices of goods purchased by producers
the economy’s total quantity of output of final goods and services

National income and product accounts (national accounts), p. 328

Final goods and services, p. 328

Intermediate goods and services, p. 328

Gross domestic product (GDP), p. 328

Value added, p. 329

Aggregate output, p. 332

Real GDP, p. 333

Nominal GDP, p. 333

Chained dollars, p. 334

GDP per capita, p. 335

Aggregate price level, p. 336

Market basket, p. 336

Price index, p. 337

Inflation rate, p. 337

Consumer price index (CPI), p. 337

Producer price index (PPI), p. 339

GDP deflator, p. 339