Macro Chapter 21 Vocab

2. A good or service that is used as a component of a final good or service.
6. The value of the final goods and services produced in a given year expressed in terms of the prices in a reference base year.
8. A good or service that is produced for it's final user and not as a component of another good or service.
14. The expenditure by households on consumption goods and services.
15. The amount of income that is not paid in net taxes or spent on consumption goods and services.
16. The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories.
17. The market value of all the final goods and services produced within a country in a given time period.

1. Items that firms in the U.S. produce and sell to the rest of the world.
3. Government expenditure on goods and services.
4. A periodic but irregular up and down movement of total production and other measures of economic activity.
5. The value of exports of goods and services minus the value of imports of goods and services.
7. A period during which real GDP decreases for at least two successive quarters; or defined by the NBER as “a period of significant decline in total output, income, employment, and trade, usually lasting from six months to a year, and marked by contractions in many sectors of the economy.”
9. Items that households, firms, and governments in the United States buy from the rest of the world.
10. Taxes paid minus cash benefits received from governments.
11. The decrease in the value of capital that results from its use and from obsolescence.
12. The value of real GDP when all the economy’s factors of production–labor, capital, land, and entrepreneurial ability–are fully expressed.
13. The value of the final goods and services produced in a given year expressed in terms of the prices of that same year.