the Macroeconomics- study of total effects on national economy from the choices made by households, firms, and government. (Aggregate) AggregateGross Domestic Product (GDP)- Bureau of economic analysis- market value of all final goods and services produced within a country within a given amount of time Final goods- is what measured in GDP If good is produced in US, using US labor, it is counted as domestic resources and counts toward GDP Intermediate good- good that goes to a company and not a final consumer Components of GDP -Household => Consumption -Business => Investment Government => Spending Govt. Rest of World => Net Export (Export, Import) (C)Consumption- expenditure by households on durable (goods that last 3 years or more) nondurable goods and services -Represents about 70.5% of consumption by households (I)Investment- purchases by businesses of new capital good/looks to the future -Represents about 12.5% (G)Government- spending of all governments of GDP -Represents about 20.5% (NX)Net Exports- total imports minus total exports -Represents about -3.5% (Y)Total GDP- Y=C+I+G+NX Expenditures not included in GDP- Used goods, Financial Assets Related Measurements -GNP-