Fill in the Blanks
The Circular Flow Model and GDP - Fill-in-the-Blank
1
of
Economic
Bureau
Analysis
spending
In
the
United
States
,
the
calculates
the
national
income
and
product
accounts
.
The
national
income
and
product
accounts
keep
track
of
the
of
consumers
,
sales
of
producers
,
business
investment
,
government
pruchases
,
and
a
variety
of
other
flows
of
money
among
different
sectors
of
the
economy
.
2
and
flow
firms
factors
Households
services
households
firms
markets
equal
goods
of
produces
production
income
resources
opposite
The
circular
flow
model
shows
the
of
money
,
products
,
and
resources
through
the
economy
.
The
flow
of
money
into
each
market
or
sector
is
to
the
flow
of
money
coming
out
of
that
market
or
sector
.
The
simple
circular
flow
model
shows
the
flow
of
resources
/
products
in
one
direction
and
the
flow
of
money
in
the
direction
.
In
the
simple
circular
flow
model
,
the
two
sectors
of
the
economy
are
and
.
A
household
consists
of
either
an
individual
or
a
group
of
people
who
share
their
.
A
firm
is
an
organization
that
goods
and
services
for
sale
.
There
are
two
kinds
of
in
the
simple
circular
flow
model
.
Product
markets
are
markets
for
.
Households
buy
goods
and
services
from
.
Factor
markets
are
markets
in
which
firms
buy
the
they
need
to
produce
goods
and
services
.
own
the
and
sell
them
to
firms
.
3
hold
of
purchased
income
good
loans
provide
stocks
homes
rest
taxes
revenue
and
sold
paying
the
machinery
Military
lending
rent
inventories
loans
capital
output
profit
interest
receiving
goods
services
structures
households
service
firms
physical
Unemployment
absorb
tax
new
purchased
Households
expanded
sold
wages
world
bonds
borrowed
borrowing
ownership
The
circular
flow
model
includes
extra
elements
that
were
ignored
in
the
simple
circular
flow
model
.
In
product
markets
,
engage
in
consumer
spending
,
or
the
purchase
of
goods
and
services
.
sell
the
use
of
their
land
,
labor
,
capital
,
and
entrepreneurship
to
in
exchange
for
payments
of
rent
,
wages
,
interest
,
and
profit
.
Most
households
derive
the
bulk
of
their
income
from
earned
by
selling
labor
.
Some
households
derive
additional
income
from
their
indirect
ownership
of
the
used
by
firms
.
The
indirect
ownership
of
physical
capital
takes
the
form
of
and
.
Stocks
are
shares
in
the
of
a
company
.
Bonds
are
to
firms
.
The
income
households
receive
from
the
factor
markets
includes
distributed
to
company
shareholders
and
the
payments
on
any
bonds
that
they
hold
.
Households
receive
from
firms
in
exchange
for
the
use
of
their
land
.
Some
households
receive
government
transfers
,
which
are
payments
that
the
government
makes
to
individuals
without
expecting
a
or
in
return
.
insurance
payments
are
one
example
of
a
government
transfer
.
The
markets
for
goods
and
services
do
not
all
household
income
.
Households
must
pay
part
of
their
income
to
the
government
in
the
form
of
.
The
total
income
households
have
left
after
government
transfers
and
taxes
is
disposable
income
.
Households
set
aside
a
portion
of
their
for
private
savings
.
Private
savings
go
into
financial
markets
where
they
are
used
to
buy
stocks
/
bonds
and
make
.
Financial
markets
funds
to
the
government
,
firms
,
and
the
rest
of
the
world
.
The
government
uses
much
of
its
,
plus
additional
funds
in
the
financial
markets
,
to
buy
goods
and
services
and
provide
government
transfers
.
Government
purchases
are
total
expenditures
on
by
federal
,
state
,
and
local
governments
.
spending
is
an
example
of
a
government
purchase
.
The
participates
in
the
United
States
economy
.
Some
of
the
goods
and
services
produced
in
the
United
States
are
to
residents
of
other
countries
.
Goods
and
services
to
other
countries
are
known
as
exports
.
Some
of
the
goods
and
services
by
residents
of
the
United
States
are
produced
abroad
.
Goods
and
services
from
other
countries
are
known
as
imports
.
Foreign
generates
a
flow
of
funds
into
the
United
States
from
the
rest
of
the
world
.
Foreign
leads
to
a
flow
of
funds
out
of
the
United
States
to
the
rest
of
the
world
.
Investment
spending
is
spending
on
new
productive
physical
capital
,
such
as
and
,
and
on
changes
in
.
Inventories
are
goods
and
raw
materials
that
firms
to
facilitate
business
operations
.
Investment
spending
includes
spending
on
the
construction
of
any
structure
,
including
assembly
plants
and
.
Like
an
assembly
plant
,
a
new
house
produces
a
future
stream
of
-
housing
services
for
its
occupants
.
4
wages
value
three
inputs
spending
sum
profit
rent
added
final
end
interest
Final
goods
and
services
are
products
that
are
sold
to
the
final
,
or
,
user
.
Intermediate
goods
and
services
are
products
that
are
into
the
production
of
final
goods
and
services
.
Gross
domestic
product
(
GDP
)
is
the
total
value
of
all
goods
and
services
produced
in
an
economy
during
a
given
period
of
time
.
There
are
approaches
to
the
calculation
of
GDP
.
The
-
approach
is
to
survey
firms
and
add
up
their
contributions
to
the
value
of
final
goods
and
services
.
The
expenditure
approach
is
to
add
up
aggregate
on
domestically
produced
final
goods
and
services
in
the
economy
.
Aggregate
spending
is
the
of
consumer
spending
,
investment
spending
,
government
purchases
,
and
exports
minus
imports
.
The
income
approach
is
to
add
up
the
total
factor
income
earned
by
households
from
firms
in
the
economy
,
including
,
,
,
and
.
The
value
of
intermediate
goods
and
services
are
excluded
from
GDP
to
avoid
counting
the
items
several
times
.
The
value
-
added
method
avoids
double
-
counting
by
subtracting
the
cost
of
from
the
value
of
the
at
each
stage
of
the
production
process
.
6
M
expenditure
final
spending
C
I
M
subtract
C
G
counting
double
X
I
G
X
leaks
net
The
approach
is
another
way
to
calculate
GDP
.
The
expenditure
approach
adds
up
the
aggregate
on
domestically
produced
final
goods
and
services
.
The
expenditure
approach
must
be
carried
out
in
a
way
that
avoids
-
.
The
expenditure
approach
counts
only
the
value
of
sales
to
buyers
,
such
as
consumers
,
firms
that
purchase
investment
goods
,
the
government
,
or
foreign
buyers
.
Four
types
of
spending
make
up
GDP
.
Consumer
spending
is
denoted
by
the
symbol
.
Investment
spending
is
denoted
by
the
symbol
.
Government
purchases
are
denoted
by
the
symbol
.
Exports
are
denoted
by
the
symbol
.
Since
it
is
not
spent
on
domestic
goods
and
services
,
income
spent
on
imports
across
national
borders
.
Statisticians
must
spending
on
imports
from
the
calculation
of
GDP
.
Imports
are
denoted
by
the
symbol
.
GDP
=
+
+
+
-
The
difference
between
the
value
of
exports
and
the
value
of
imports
is
known
as
exports
.
7
income
interest
profit
factor
rent
wages
The
income
approach
adds
up
the
earned
by
labor
,
the
earned
by
those
who
lend
their
savings
,
the
earned
by
those
who
lease
their
land
,
and
the
earned
by
the
shareholders
who
own
the
physical
capital
of
a
firm
.
All
the
money
spent
on
domestically
produced
goods
and
services
generates
.
8
double
counting
double
goods
services
counting
double
counting
Intermediate
goods
are
not
included
in
GDP
to
avoid
-
their
value
.
Inputs
are
not
included
in
GDP
to
avoid
-
their
value
.
Used
goods
are
not
included
in
GDP
to
avoid
-
their
value
.
Financial
assets
such
as
stocks
and
bonds
are
not
included
in
GDP
because
they
are
not
or
.
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