exports - imports
exports > imports
imports > exports
goods produced abroad and sold domestically
goods produced domestically and sold abroad
Gross Domestic Product- the total market value of all final goods and services produced annually in an economy
by-products of production or consumption that impose costs on third parties
example: pollution, traffic, etc.
by-products of consumption or production that benefit third parties
example: vaccinations, etc.
public goods and services
goods and services provided by the government through taxes; benefits public
example: military, healthcare, education, roads, parks, etc.
decreases in GDP for two consecutive quarters; (6 months in a row)
recession longing longer than two or more years
overtime GDP expands and contracts repeatedly
includes spending by all levels of government on final goods and services
the time period in which at least one input is fixed
the time period in which all inputs can be varied
circular flow model
a simplified representation of how the economy's transactions work together