Intermediate Macroeconomics Ch2 notes

Intermediate Macroeconomics Ch2 notes - Chapter 2 A Tour...

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Chapter 2: A Tour of the Book Aggregate Output GDP: Gross Domestic Product (or GNP: Gross National Product) GDP is the value of the final goods and services produced in the economy during a given period. There should be no intermediate goods being covered in GDP. GDP is the sum of value added in the economy during a given period. Value added is the value of its production minus the value of the intermediate goods it uses in production. GDP is the sum of incomes in the economy during a given period. Nominal and Real GDP Nominal GDP is the sum of the quantities of final goods produced times their current market price. Real GDP is the sum of the quantities of final goods produced times the base year price. Nominal/Real GDP per capita This is the ratio of nominal/real GDP to the population of the country. Expansion/Recession Periods of positive real GDP growth are called expansion.
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