econ rapid points

-the gross nationa product is defined as The dollar value of all goods and services produced by U.S. nationals worldwide -gross domestic product is defined as The dollar value of all the goods and services produced within U.S. borders -a ford plant in Stuttgart, germany is counted as U.S. GNP -a Honda plant in Marysville,ohio is counted as U.S. GDP -the Mercedes plant in Alabama is counted as German GNP -GNP can be calculated by either the expenditure or the income approach. The expenditure approach is The calculation of all the dollars spent on U.S. goods in one year -the income approach is The calculation of all the dollars earned in US in one year (sum of all W-2?s) -the total for the income effect is greater than the expenditure effect means that Americans are. Saving -if the total for the expenditure effect is greater than the income effect, it means Americans are Borrowing -the economy in the US that is black market or does not pay taxes is called the Underground economy -the overarching concept that classical and neoclassical economists have held to is that the economy Is a self-adjusting mechanisim Say?s law says Supply creates its own demand -classical and neo classical economists believe that wages and prices are flexible in both upwards and downwards directions