4. Recession
My definition: When GDP, Gross Domestic Product, decreases, it calls as recession. When recessions exist for a long time, it calls as depression.
Economic definition: A period of general economic decline; specifically, a decline in GDP for two or more consecutive quarters.
5. The income approach to calculate GDP [You tell me which specific things are used for this approach]
The formula for Income Approach is compensation of employees +rents + profits + net interest+ non-income adjustments = GDP. Therefore, the income approach to measuring GDP is done by adding all the incomes earned by households in exchange for the factors of production during a period of time.
6. Investment
My definition: Equipments to make their products from business.
Economic definition: In business, the purchase by a producer of a physical good such as durable equipment or inventory in hope of improving future business. To sum up, investment is by business on equipment to make their products.
7. X - M [ what does each symbol stand for and how does this math phrase connect to GDP measurement]
x-m represents exports minus imports. Exports are made here and imports are made from somewhere else. It is not possible to count import as GDP because we do not make import.
8. aggregate(s)
My definition: Sum or total of final prices of items that produced in a year.
Economic definition: Adding up the final price paid for all items produced in one year in the United States.
9. National Income Accounting
My definition: The income earned from wages, salaries, and certain supplements paid by firms and government to suppliers of labor.
Economic definition: The income earned by a country’s people, including labor and capital investment.
10. Private sector
My definition: The economy not controlled by the government.
Economic definition: The part of a nation’s economy which is not controlled by the government.
11. Public sector
My definition: The economy controlled by the government.
Economic definition: The part of the economy concerned with providing basic government services. The composition of the public sector varies by country, but in most countries, the public sector includes such services as the police, military, public roads, public transit, primary education and healthcare for the poor.
12. Savings
My definition: not saving
Economic definition: The part of a person’s income that is not spent.
13. The difference between GDP and GNP: Do not simply state what the letters stand for: Find out what makes the difference.
GDP letters represent Gross Domestic Product, and GNP letter represent Gross National Product. While GDP means total market value of all final goods and services produced during a particular time period in the United States, GNP means total market value of all final goods and services produced during a particular time period by US residents. For GDP it does not matter who owns the resources because where it produced is more matter. However, for GNP it does no matter where in the world they are earned.
