Economics Made Economical

The Economic Glossary

  1. Consumption: One of the four components used to tabulate GDP, it is the sum of all consumers’ spending on goods and services.
  2. GDP (Gross Domestic Product): An economy’s annual Consumption plus Government Spending plus Investment plus Net Exports.
  3. GNP (Gross National Product): A measurement that’s usually quite similar to GDP. GDP measures economic activity within a nation’s geographic borders, whereas GNP measures economic activity among all of a nation’s firms and citizens regardless of where they are physically located.
  4. Government Spending: One of the components of GDP, it is the total of all government expenses.
  5. Investment: One of the four components of GDP, it is the sum of spending on non-consumable capital goods or investment purchases.
  6. Net Exports: A component of GDP that includes domestically-produced goods purchased by foreigners, and excludes foreign goods that are purchased domestically. Net Exports can be either a positive or a negative number depending on whether a nation is exporting or importing a larger amount.



    1. Tip of the Day « econprofessor
    2. The Fed’s Job « econprofessor
    3. Tip of the Day 9: A Beautiful Mind « Econoblog
    4. What Is Fiscal Policy? « Econoblog
    5. Vocab of the Day: Investment « Econoblog

    Your Thoughts?

    Fill in your details below or click an icon to log in: Logo

    You are commenting using your account. Log Out /  Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out /  Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out /  Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out /  Change )


    Connecting to %s

    %d bloggers like this: