ECS3704 Assignment 1 Semester 1 2023 (211581) Questions and Answer {Distinction A+}

National Income Accounting - -Measurement of the national economy's performance, dealing with the overall economy's output and income -Gross Domestic Product (GDP) - -Total dollar value of all final goods and services produced in a nation in a single year -Net Exports - -difference between what the nation sells to other countries and what it buys from other countries -Depreciation - -loss of value because of wear and tear to durable goods and capital goods -Net Domestic Product (NDP) - -value of the nation's total output (GDP) minus the total value lost through depreciation on equipment -National Income (NI) - -total income earned by everyone in the economy -Personal Income (NI) - -total income that individuals receive before personal taxes are paid -Transfer Payments - -welfare and other supplementary payments that a state or the federal government makes to individuals -Disposable Personal Income (DI) - -income remaining for people to spend or save after all taxes have been paid -Inflation - -prolonged rise in the general price level of final goods and services -Purchasing Power - -the real goods and services that money can buy; determines the value of money -Deflation - -prolonged decline in the general price level of goods and services -Consumer Price Index (CPI) - -a statistical measure of the average of prices of a specified set of goods and services purchased by typical consumers in city areas -Market Basket - -representative group of goods and services used to compile the consumer price index -Base Year - -year used as a point of comparison for other years in a series of statistics -Producer Price Index (PPI) - -measure of the change in price over ti