Cont'd Mt. San Jacinto College - CTE - Department of Economics Chapter 7 Macroeconomic Measurements, Part II: GDP and Real GDP - Pre-Class & In-Class Activities Packet Name/I.D. Number: Section: Date: Part 2. Matching: Match the Key terms in Column "A" with the definitions in Column "B" by writing the block letter of your choice from Column "B" in the space provided under "A" and match the definitions in column "B" with the meanings or examples or facts in column "C" by writing the lower letter case of your choice in the space provided under column "B". Column "A" Column "B" Column "C" 12.Imports L. The value of the entire output produced annually 1. Cyclical fluctuations in the level of economic activities. within a country's borders, adjusted for price m. Year-to-year Increase in the total quantity and quality of changes. goods and services produced in a country. 13.Exports M. GDP minus the capital consumption allowance. n. (Nominal GDP + Price Index) X 100. N. Recurrent swings (up and down) in Real GDP. O. The net addition to the economy after accounting for the 14.Net Exports O. The portion of personal income that can be used tear and wear of machinery and equipment used up in for consumption or saving; equal to personal income the process of generating the GDP for the year. minus personal taxes (especially income taxes) 15.National Income p. The difference between the value of Exports to the rest P. Total domestic (U.S.) spending on foreign goods. of the world and Imports from the rest of the world Q. Total foreign spending on domestic (U.S.) goods. q. The value of goods and services purchased by a nation 16.Capital Consumption R. Increases in Real GDP. from the rest of the world Allowance (Depreciation) S. Total income earned by U.S. citizens and r. The sum total of the incomes that individuals receive in a businesses, no matter where they reside or are nation for their contributions of resources to the 17.Net Domestic Product located; the sum of the payments to resources production process in the form of labor, capital, land and (land, labor, capital, and entrepreneurship): National entrepreneurial abilities. income = Compensation of employees S Take home pay after paying income and payroll taxes 18.Personal Income Proprietors' income + Corporate profits + Rental available for spending or saving. income of persons + Net interest The value of goods and services sold by a nation to the 19.Disposable Income T. The amount of income that individuals actually rest of the world receive. It is equal to national income minus U . The sum total of all income by a nation accruing to factors undistributed corporate profits, social insurance of production, like labor, land, capital and 20.Real GDP taxes, and corporate profits taxes, plus transfer entrepreneurship and businesses owned by a nation's payments. citizens 21.Economic Growth U. Exports minus imports. V. The amount of money kept aside to replace exhausted V. The estimated amount of capital goods used up capital goods such as machinery and equipment in the in production through natural wear, obsolescence, process of producing the GDP for the year. It is also 22. Business Cycle and accidental destruction. known as "Depreciation expense" in Accounting. 3
