ACC 410 Study Guide - Final Guide: Retained Earnings, Purchasing Power Parity, Demand Deposit
Document Summary
Performance and policy: real gdp (real gross domestic product): the value of final goods and services produced within the borders of a country during a specific time period, typically a year. Tells us whether the economy"s output is growing: to determine real gdp, government statisticians first calculate nominal. Inflation is an increase in the overall level of prices. Saving, investment and modern economic growth: saving occurs when current consumption is lass than current output. Investment occurs when resources are devoted to increasing future output: financial investment captures what ordinary people mean when they say. Neither are the purchases of a factory nor apartment buildings built in previous years. These transactions just transfer the ownership of financial assets or existing real assets from one party to another: the only way that more output can be direction at investment activities is if saving increases.
