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Unit 2 - Chapter 7 - Macroeconomics Chapter 7 GDP Measuring...

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Macroeconomics Chapter 7 GDP: Measuring Total Production and   Income
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Gross Domestic Product Measures Total Production Gross Domestic Product (GDP)   The market value of all final  goods and services produced in  a country during a period of  time.
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Gross Domestic Product Measures Total Production GDP is measured using market values, not  quantities. GDP includes only the market value of final  goods. Final good or service    A good or service purchased  by a final user. Intermediate good or service    A good or service that  is an input into another good or service, such as a  tire on a truck. GDP includes only current production.
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Calculating GDP PRODUCTION AND PRICE STATISTICS FOR 2007 (1) PRODUCT (2) QUANTITY (3) PRICE PER UNIT Eye examinations 100 $50.00 Pizzas 80 10.00 Textbooks 20 100.00 Paper 2,000 0.10 7 - 1 PRODUCT (1) QUANTITY (2) PRICE PER UNIT (3) VALUE Eye examinations 100 $50 $5,000 Pizzas 80 10 800 Textbooks 20 100 2,000 GDP $7,800
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Production, Income, and the Circular Flow Diagram Transfer payments   Payments by the government to  individuals for which the government does not  receive a good or service in return.
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