Measuring GDP - GDP Gross Domestic Product GROSS DOMESTIC PRODUCT(GDP The market value of all final goods and services produced in a country in a year

Measuring GDP - GDP Gross Domestic Product GROSS DOMESTIC...

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GDP Gross Domestic Product
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GROSS DOMESTIC PRODUCT (GDP): The market value of all final goods and services produced in a country in a year . Final goods and services have been purchased for final use.
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They are not for resale or further manufacture. Economists often measure GDP by totaling the money spent on four major categories of goods and services:
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Investment (I) Personal Consumption Expenditures (C) Government (G) Net Exports (NX) Fixed Investment Inventories Exports Imports GDP What are the components of GDP? GDP = C + I + G + NX
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Consumption Consumption (C): Spending by households on goods and services. Includes spending on things such as cars, food, and visits to the dentist. Makes up two-thirds of GDP spending.
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Investment Investment (I): Spending by businesses on machinery, factories, equipment, tools, and construction of new buildings.
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Government Government (G): Spending by all levels of government on goods and services.
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  • Fall '16
  • Ms. Ballard
  • Macroeconomics, Gdp, Federal Reserve System, gross domestic product, Final goods, government spending

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