Sunday, January 2, 2011

Post 13: 10 Things I Learned

1.  The process macroeconomists use to track production, income, and consumption is known as national income accounting and provides information about a country's economic activities.

2.  The most widely used NIPA is gross domestic product.

3.  To actually compute GDP, economists use the output-expenditure model.

4.  Personal consumption expenditures include durable goods, nondurable goods, and services.

5.  Gross investment is the total value of all capital goods produced in a given country in one year as well as changes in the dollar value of business inventories.

6.  Government transfer payments are not included when calculating government purchases.

7.  A price index is a set of statistics that allows economists to compare price over time.

8.  Illegal activities and unreported legal activities are part of the underground economy.

9.  Barter transactions, housework, and do-it-yourself home repairs are examples of non-market activities.

10. Indirect taxes are taxes included in the final price of goods and services.

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