Chapter 10 - Measuring a Nation's Income

Investment

________- the purchase of goods that will be used in the future to produce more goods and services.

Consumption

________- spending by households on goods and services, with the exception of purchases of new housing.

firms

Money continuously flows from households to ________ and back to households.

domestic product

Gross ________ (GDP)- the market value of all final goods and services produced within a country in a given period of time.

GDP

________ per person seems a natural measure of the economic well- being of the average individual.

Net exports

________- spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)

production of goods

Nominal GDP- the ________ and services valued at current prices.

Government

________ purchases- spending on goods and services by local, state, and federal governments.

persons income

A(n) ________ determines whether they can afford higher standards of living.

GDP

________ adds together different kinds of products into a single measure of the value of the economic activity.