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GDP - Elizabeth Christy Gross Domestic Product Instructor...

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Elizabeth Christy Gross Domestic Product 11/5/10 Instructor Kevin Camden MBA 510-D2B0 Economics Benedictine University Gross Domestic Product Each good and service produced and brought to market has a price that price serves as a measure of value for calculating total output ( Schiller, 2010 pg. 91). The total dollar value of final output produced each year is called the gross domestic product (GDP), which is the sum of all final goods and services produced for the market in a given time period, with each good or service valued at its market price (Schiller, 2010, pg. 91). The components of Gross Domestic Product ( GDP ) tell you what the U.S. is good at producing; over 70% of what the U.S. produces is for personal consumption - about $10 trillion
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of the $14 trillion total GDP. ( www.useconomy.about.com ). The United States has a lot of people within its borders, so it’s very good at providing high quality services for its own individuals. Nearly half of GDP is services, not products; the two largest service industries are: real estate (10%) and health care (12%) ( www.useconomy.about.com ). the other half is products, which are further divided into two sub-categories: Non-durable goods, and durable goods. Non durable goods are 20% of GDP and the three largest components of non-durable goods are food (10%), clothing (2.7%) and fuel (2.4%) ( www.useconomy.about.com ). Durable goods, such as autos (3.6%) and furniture (3%) are the smallest, at only 8% of GDP. The remaining 30% of
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