Study Guide

gross domestic product -The merchandise time value of in all final effectives and service produces in a country during a period of time -gross domestic product besides includes market value of final goods or services- a good or service purchased by a final user - run-of-the-mine good- a good or service that is an input into otherwise good or service (ex. Tire) -Y = C + I + G + NX -Consumption- outlay by households on goods and services -Investment- expending by firms on new factories, office buildings, machinery, any additions to inventories, plus spending by households and firms on new houses. -Government- spending by federal, state, and topical anesthetic governments on goods and services. -Net Exports- exports minus imports Value-Added Method - The market value a firm adds to a product Shortcomings in gross domestic product -Household business -Underground Economy- purchase and selling of goods and services that is concealed from govt to avoid taxes or regulations or because the goods and services be illegal.

-Value of vacant is not included in gross domestic product -gross domestic product is not modify for taint or other negative effects of payoff -GDP is not adjusted for changes in crime and other affectionate problems -GDP measures the size of pie but not how pie is divided rattling GDP vs titulary GDP -Nominal GDP- the value of final goods and services evaluated at current-twelvemonth prices -Real GDP- the value of final goods and services evaluated at rack-year prices. -Calculate accredited GDP by taking quantity in want year and multip lying by price in base year. -At base year,! titular phrase GDP and Real GDP are equal -Before base year, nominal GDP is less than sincere GDP. -After base year, nominal GDP is more than substantial GDP. Gross National harvest-home (GNP) -The value of final goods and services produced by residents of the US, even if the production takes place outside of the US. GDP per Capita -Levels of rattling GDP per person. -Calculated by dividing the value of real GDP of a country by the countrys population. Unemployment Rate -Labor Force-...If you want to get a full essay, set it on our website: OrderCustomPaper.com

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