Unit 2 - Chapter 7

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

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Macroeconomics Chapter 7 GDP: Measuring Total Production and   Income
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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.
Background image of page 2
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.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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
Background image of page 4
Production, Income, and the Circular Flow Diagram Transfer payments   Payments by the government to  individuals for which the government does not 
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 19

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

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online