Unformatted text preview: changes in GDP, and therefore employment and the nation's income level. There are many other national income accounts as one moves from GDP to disposable personal income. GDP only counts final goods and services. Moreover, using real (or inflation-adjusted) GDP enables us to make more meaningful comparisons of the nation's economic performance over time. The GDP deflator is a broad index used to convert nominal GDP to real GDP. GDP is not, nor was it ever intended to be a measure of social well-being. NEW CONCEPTS INTRODUCED gross domestic product (GDP) circular flow model personal income (PI) gross national product (GNP) expenditure approach disposable personal income (DI) transfer payment income approach nominal GDP final goods national income (NI) real GDP intermediate goods indirect business taxes GDP chain price index flow stock...
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- Spring '08
- Gross Domestic Product (GDP), gross domestic product, Measures of national income and output, GDP GDP chain