ch.6 - 1 ECONOMICS 304L FALL 2007 NOTES ON CHAPTER 6:...

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ECONOMICS 304L FALL 2007 NOTES ON CHAPTER 6: DEFINITIONS GDP = GROSS DOMESTIC PRODUCT = dollar value of all final goods and services produced within a given period of time by factors of production located WITHIN a country. dollar value = measured in US dollars, the real value of which changes over time, so we have a changing yardstick NOMINAL GDP = GDP in current dollars (uncorrected) REAL GDP = GDP in constan t dollars (corrected for changes in the price level) REAL GDP = NOMINAL GDP/GDP DEFLATOR X 100 final goods and services - do not count intermediate goods that are part of the value of a final good or service - ie. do not count tires that are included in the price of a bicycle or a car - if the tire is purchased by a consumer, it is then a final good. within a given period of time - do not count goods or services produced in a previous time period - do not count old or used goods. factors of production = labor, land, capital, entrepreneurship located WITHIN a country = GDP includes everything produced
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This note was uploaded on 04/26/2009 for the course ECO 304K taught by Professor Hickenbottom during the Spring '10 term at University of Texas at Austin.

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ch.6 - 1 ECONOMICS 304L FALL 2007 NOTES ON CHAPTER 6:...

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