vocab

• Capital stock


  The aggregate quantity of capital goods
• Consumption expenditure


  Expenditure on all goods and services for final use. Represented by the symbol C.
• Depreciation


  The amount by which the capital stock is depleted through the production process
• Exports


  The value of all domestically produced goods and services sold to firms, households, and governments in other countries
• Final goods

  Goods that are not used as inputs by other firms but are produced to be sold for consumption, investment, government, or export during the period under consideration
• Fixed investment


  The creation of new plant and equipment
• GDP deflator


  An index number derived by dividing nominal GDP by real GDP. Its change measures the average change in price of all the items in the GDP.
• Government purchases

  All government expenditure on currently produced goods and services, exclusive of government transfer payments. Represented by the symbol G.
• Gross domestic product (GDP)

  The total value of goods and services produced in the economy during a given period
• Imports


  The value of all goods and services purchased from firms, households, or governments in other countries
• Intermediate goods

  All outputs that are used as inputs by other producers in a further stage of production
• Inventories

  Stocks of raw materials, goods in process, and finished goods held by firms
• Investment expenditure

  Expenditure on the production of goods not for present consumption. Represented by the symbol I.
• Net exports


  The value of total exports minus the value of total imports. Represented by the symbol NX.
• Transfer payments


  Payments to an individual or institution not made in exchange for a good or service
• Value added

  The value of a firm's output minus the value of the inputs that it purchases from other firms