20.2 GDP - businesses buy • GDP is the value of FINAL goods and services • Used goods and financial assets are not a part of GDP • Used goods

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GDP is the market value of all final goods and service produced within a country. Two ways of measuring GDP -Expenditure Approach Measures GDP by using data on consumptions expenditure, investment, government expenditure on goods and services, and net exports. GDP is the sum of all those mentioned above Expenditures that are not GDP Total expenditure does not include al the things that people and
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Unformatted text preview: businesses buy. • GDP is the value of FINAL goods and services. • Used goods and financial assets are not a part of GDP • Used goods is not because they were part of GDP in the period in which they were produced and during which the time they were new good • Financial assets such as bonds and stocks are not GDP, they are loans, not buying good and services....
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This note was uploaded on 11/18/2010 for the course ACC 2002 taught by Professor Staff during the Spring '08 term at UChicago.

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