Chapter 21 - Measuring GDP

Chapter 21 - Measuring GDP - MEASURING GDP AND ECONOMIC...

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21 CHAPTER MEASURING GDP AND ECONOMIC GROWTH
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Macroeconomics Sequence The next set of chapters deal with Macroeconomics issues – i.e., looking at the U.S. economy as a whole.
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Gross Domestic Product GDP Defined GDP or gross domestic product is the market value of all final goods and services produced in a country in a given time period. This definition has four parts: Market value Final goods and services Produced within a country In a given time period
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Gross Domestic Product The Bureau of Economic Analysis uses two approaches to measure GDP: Aggregate expenditure Total expenditure on final goods and services equals the value of output of final goods and services, which is GDP. Total expenditure = C + I + G
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Aggregate income Aggregate income earned from production of final goods, Y , equals the total paid out for the use of resources, wages, interest, rent, and profit. Firms pay out all their receipts from the sale of
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Chapter 21 - Measuring GDP - MEASURING GDP AND ECONOMIC...

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