Mod. 10 Vocabulary AP Macro

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National income and product accounts

Back

Keep track of the flows of money among different sectors of the economy; in the United States, calculated by the Bureau of Economic Analysis; also known as national accounts.

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Household

Back

A person or group of people who share income.

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Factor markets

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Where resources, especially capital and labor, are bought and sold.

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Government transfers

Back

Payments that the government makes to individuals without expecting a good or service in return.

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Disposable income

Back

Income plus government transfers minus taxes; the total amount of household income available to spend on consumption and to save.

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Consumer spending

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Household spending on goods and services.

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Product markets

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Where goods and services are bought and sold.

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Private savings

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Disposable income minus consumer spending; disposable income that is not spent on consumption but rather often goes into financial markets.

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Financial markets

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The markets (banking, stock, and bond) that channel private savings and foreign lending into investment spending, government borrowing, and foreign borrowing.

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Investment spending

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Spending on new productive physical capital, such as machinery and structures, and on changes in inventories.