GDP includes goods both when they are purchased as inputs and when they are sold as final products.

GDP excludes transactions in which money or goods change hands but in which no new goods and services are produced.

U.S. GDP excludes the income of foreigners working in the United States.

U.S. GNP is the market value of all final goods and services produced, here and abroad, during a given period, by U.S.-owned factors of production.

Aggregate expenditure and aggregate income are two sides of the same coin.

Residential investment is the largest component of domestic household consumption.

When the value of exports exceeds the value of imports, the country faces a trade deficit.

Net investment equals gross investment plus depreciation.

Households use disposable income to consume, save, and pay taxes.

When the price level increases, nominal GDP increases even if no new goods and services are produced.