Tuesday, January 4, 2011

POST 13

The process macroeconomists use to track production, income, and consumption is known as national income accounting and provides information about a country's economic activities.


The most widely used NIPA is gross domestic product.

To actually compute GDP, economists use the output- expendature model.

Personal consumption expenditures include durable goods, nondurable goods, and services.

Gross investment is the total value of all capital goods produced in a given country in one year as well as changes in the dollar value of business inventories.
Government transfer payments are not included when calculating government purchases.

A price index is a set of statistics that allows economists to compare price over time.

Illegal activities and unreported legal activities are part of the underground economy.

Barter transactions, housework, and do-it-yourself home repairs are examples of nonmarket activities.

Inderect taxes are taxes included in the final price of goods and services.

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