•GDP (gross domestic product) is the market value of all final goods and rvices produced within a country in a given period of time.
•GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and rvices.
•Consumption (C):
•The spending by houholds on goods and rvices, with the exception of purchas of new housing.
•Investment (I):
•The spending on capital equipment, inventories, and structures, including new housing.
•Government Purchas (G):
•The spending on goods and rvices by local, state, and federal governments.
•Net Exports (NX):
•Exports minus imports.
•Nominal GDP values the production of goods and rvices at current prices.
•Real GDP values the production of goods and rvices at constant prices.
•The GDP deflator is a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100.
•The consumer price index shows the cost of a basket of goods and rvices relative to the cost of the same basket in the ba year. The index is ud to measure the overall level of prices in the economy. The percentage change in the CPI measures the inflation rate.
•The consumer price index is an imperfect measure of the cost of living for the following three reasons: substitution bias, the introduction of new goods, and unmeasured changes in quality. Becau of measurement problems, the CPI overstates annual inflation by about 1 percentage point.
•The GDP deflator differs from the CPI becau it includes goods and rvices produced rather than goods and rvices consumed. In addition, the CPI us a fixed basket of goods, while the GDP deflator automatically changes the group of goods and rvices over time as the composition of GDP changes.
•Dollar figures from different points in time do not reprent a valid comparison of purchasing power. So various laws and private contracts u price indexes to correct for the effects of inflation.
•The real interest rate equals the nominal interest rate minus the rate of inflation.
•Productivity is the quantity of goods and rvices produced from each unit of labor input.
☉Physical Capital (K)
The stock of equipment and structures that are ud to produce goods and rvices.
欧美胖奶奶
•Tools ud to build or repair automobiles.
•Tools ud to build furniture.
•Office buildings, schools, etc.
☉青春的激情Human capital (H)
The knowledge and skills that workers acquire through education, training, and experience.
水仙多久开花•阴道炎的原因Human capital includes the skills accumulated in early childhood programs, grade school, high school, college, and on-the-job training for adults in the labor force.
•Producing human capital requires inputs in the form of teachers, libraries, and student time.
☉Natural resources (N)开酥
汉明帝尊师 The inputs into the production of goods and rvices that are provided by nature, such as land, rivers, and mineral deposits.
•Natural resources take two forms: renewable and nonrenewable.
•Although natural resources can be important, they are not necessary for an economy to be highly productive in producing goods and rvices
Technological knowledge (T / A)
Society’s understanding of the best ways to produce goods and rvices.
•Technological knowledge takes many forms: common knowledge and proprietary.
•Technological knowledge refers to society’s understanding about how the world works. Human capital refers to the resources expended transmitting this understanding to the labor force.
•As the stock of capital ris, the extra output produced from an additional unit of capital falls; this property is called diminishing returns.
•The catch-up effect refers to the property whereby countries that start off poor tend to g
row more rapidly than countries that start off rich.
•The financial system consists of the group of institutions in the economy that help to match one person’s saving with another person’s investment.
•Financial markets are the institutions through which a person who wants to save can directly supply funds to a person who wants to borrow.
•A bond is a certificate of indebtedness that specifies obligations of the borrower to the holder of the bond. Put simply, abond is an IOU.
•脸色蜡黄Stock reprents a claim to partial ownership in a firm and is therefore, a claim to the profits that the firm makes.
