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lec ch4 - Gross Domestic Product(GDP Gross domestic product...

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Gross Domestic Product (GDP)
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Gross domestic product is the total market value all the and services produced by the goods factors of production in a country located during a certain produced by households for household consumption. period of time, except those
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Key Phrase: Total Market Value Q 1 = 10 pounds P 1 = $2/pound Q 2 = 4 units P 2 = $100 each GDP = P 1 × Q 1 + P 2 × Q 2 +∙∙∙∙ GDP = $2 × 10 + $100 × 4 = $420
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Standards of living Employment Why Market Prices?
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Key Phrase: All the goods and services Don’t forget services.
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So, To Include or Not to Include? 1. Second-hand goods 2. Asset transfers 3. Capital gains/losses 4. Compensation for services produced 5. Goods produced but not sold 6. Semi-finished goods Key Phrase: Produced (Not Necessarily Sold)
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So, To Include or Not to Include? You bought a1987 Chevy in 2009 from a used car dealer. You bought the new stock of GM Corporation. You bought a stock in 2009 for $40 and sold it
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lec ch4 - Gross Domestic Product(GDP Gross domestic product...

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