Gross Domestic Product Summer

Gross Domestic Product Summer - Gross Domestic Product...

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Gross Domestic Product
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2 Measuring GDP as the Value of Production of Final Goods and Services Different Approaches to Measuring the Gross Domestic Product (GDP) Is…
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3 the total market value of all final goods & services produced within a country in a given period of time. Gross Domestic Product (GDP) Is… Goods are valued at their market prices, so: All goods measured in the same units (e.g., dollars in the U.S.) Things that don’t have a market value are excluded, e.g., housework you do for yourself.
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4 …the total market value of all final goods & services produced within a country in a given period of time. Gross Domestic Product (GDP) Is… Intermediate goods : used as components or ingredients in the production of other goods GDP only includes final goods – they already embody the value of the intermediate goods used in their production.
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5 …the market value of all final goods & services produced within a country in a given period of time. Gross Domestic Product (GDP) Is… GDP includes tangible goods (like DVDs, mountain bikes, beer) and intangible services (dry cleaning, concerts, cell phone service).
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6 …the market value of all final goods & services produced within a country in a given period of time. Gross Domestic Product (GDP) Is… Produced suggests current production. GDP includes currently produced goods, not goods produced in the past, i.e., sold from inventory or resold
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7 …the market value of all final goods & services produced within a country in a given period of time. Gross Domestic Product (GDP) Is… GDP measures the value of production that occurs within a country’s borders, whether done by its own citizens or by foreigners located there.
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8 …the market value of all final goods & services produced within a country in a given period of time . Gross Domestic Product (GDP) Is… Usually a year or a quarter (3 months)
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9 If GDP is not a good measure of economic well-being then why do we care about GDP?
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The Economy?? If you stumbled across these headlines, "Economy Experiences Record Growth in the Fourth Quarter” "Consumer Spending Falls” Would you read on?
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How does the Economy affect me? The headline "Economy Experiences Record Growth in the Fourth Quarter," suggests that finding a summer job this year may be easier than it would be if the headline read, "Economy Experiences Slow Growth in the Fourth Quarter.“ "Consumer Spending Falls,” local retailers may not need that extra part-time workers they had planned to hire. These headlines tell us something about the health of the economy. Gross Domestic Product (GDP) gives a more complete picture of the condition of the economy.
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Tracking the Economy Tracking GDP allows us to keep a finger on the pulse of the economy—that is, the level of production in the economy at some point.
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Gross Domestic Product Summer - Gross Domestic Product...

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