Chapter 25

Question 1

Gross domestic product (GDP)

Answer 1

The total market value of all final goods and services produced in an economy in a one year period

Question 2

Consumption

Answer 2

Spending by households on goods and services

Question 3

Investment

Answer 3

Spending for the purpose of additional production

Question 4

Government spending

Answer 4

Goods and services that government buys

Question 5

Transfer payments

Answer 5

Payments to individuals that don’t involve production by those individuals

Question 6

Net exports

Answer 6

Spending on goods and services produced in the US that’s foreigners buy (exports) minus goods and services produced abroad that US citizens buy (imports)