ECON 102 Chapter Notes - Chapter 7: Gdp Deflator, Market Basket, Disposable And Discretionary Income

• School: U of M
• Department: Economics
• Course: ECON 102
• Professor: Adam Stevenson

Document Summary

National income and product accounts - aka national accounts, keep track of the flows of money between different sectors of the economy. Consumer spending - household spending on goods and services. Stock - share in the ownership of a company held by a shareholder. Bond - borrowing in the form of an i-owe-you that pays interest. Government transfers - payments by the government to individuals for which no good or service is provided in return. Disposable income - equal to income + government transfers - taxes, total amount of household income available to spend on consumption and to save. Private savings - disposable income - consumer spending, disposable income not spent on consumption. Financial markets - banking, stock, and bond markets, which channel private savings and foreign lending into investment spending, government borrowing, and foreign borrowing. Government borrowing - total amount of funds borrowed by the federal, state, and local governments in the financial markets.