KEY TERMS

budget deficit, p. 69

budget surplus, p. 69

capital good, p. 58

consumer price index, p. 80

consumption, p. 62

current account balance, p. 70

depreciation, p. 66

expected real interest rate, p.

expenditure approach, p. 55

final goods and services, p. 58

flow variables, p. 72 fundamental identity of national income accounting, p. 56

GDP deflator, p. 77 government outlays, p. 69

government purchases, p. 62

government receipts, p. 69

government saving, p. 68

gross domestic product (GDP), p. 56

gross national product (GNP), p. 59

income approach, p. 55

income-expenditure identity, p. 62

interest rate, p. 84

intermediate goods and services, p. 58

inventories, p. 58

investment, p. 62

national income, p. 64

national income accounts, p. 52

national saving, p. 69

national wealth, p. 67

net exports, p. 63

net factor payments from

abroad (NFP), p. 60

net foreign assets, p. 73

net government income, p. 67

net national product (NNP), p. 66

nominal GDP, p. 76

nominal interest rate, p. 85

nominal variables, p. 74

price index, p. 77

private disposable income, p. 66

private saving, p. 67

product approach, p. 53

real GDP, p. 75

real interest rate, p. 85

real variable, p. 75

saving, p. 67

statistical discrepancy, p. 65

stock variables, p. 72

transfers, p. 63

underground economy, p. 57

uses-of-saving identity, p. 71

value added, p. 54

wealth, p. 67

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