AP Macro Unit 2 Review

The expenditure by all levels of government on goods and services

• Imports of goods and services

• Investment

• Consumer expenditure

• Government expenditure on goods and services

The expenditure by households on consumption goods and services.

• Business Cycle

• Exports of goods and services

• Consumption expenditure

• Government expenditure on goods and services

The market value of all the final goods and services produced within a country in a given time period.

• Gross Domestic Product

• Net exports of goods and services

• Nominal GDP

• Real GDP

The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories

• Exports of goods and services

• Real GDP

• Investment

• Net exports of goods and services

The value of the final goods and services produced in a given year expressed in terms of the prices in a reference base year.

• Real GDP

• Gross Domestic Product

• Business Cycle

• Nominal GDP

The value of the final goods and services produced in a given year expressed in terms of the prices of the same year.

• Real GDP

• Nominal GDP

• Net exports of goods and services

• Gross Domestic Product

Items that firms in the United States produce and sell to the rest of the world

• Imports of goods and services

• Investment

• Nominal GDP

• Exports of goods and services

The value of exports of goods and services minus the value of imports of goods and services.

• Gross Domestic Product

• Net exports of goods and services

• Investment

• Nominal GDP

Expectant parents buy supplies for the nursery.  Would this be included in GDP? 

• Yes - Consumer Spending
• Yes - Investment 
• No - Intermediate goods
• No - Non-market activity

Which of the following purchases is included in the calculation of gross domestic product?

• A used economics textbook from the bookstore
• 1,000 shares of stock in a computer firm
• A car produced in a foreign country
• New harvesting equipment for the farm