{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 4

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

This preview shows document pages 1 - 2. Sign up to view the full document.

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