Intermediate Goods All outputs that are used as inputs by other producers in a
further stage of production.
Final Goods Goods that are not used as inputs by other firms but are
produced to be sold for consumption, investment, government,
or exports during the period under consideration.
Value Added The value of a firm’s output minus the value of the inputs that it
purchases from other firms.
Gross Domestic Product The total value of goods and services produced in the economy
during a given period.
Consumption Expenditure Household expenditure on all goods and services. Represented
by the symbol C.
Investment Expenditure Expenditure on the production of goods not for present
consumption. Represented by the symbol I.
Inventories Stocks of raw materials, goods in process, and finished goods
held by firms to mitigate the effect of short-term fluctuation in
production or sales.
Capital Stock The aggregate quantity of capital goods.
Fixed Investment The creation of new plant and equipment.
Depreciation The amo