Notes - Gross Domestic Product: Is the market value of all...

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Gross Domestic Product: Is the market value of all final goods and services produced within a nations geographic borders, during a period of time. Net Domestic Product: Transfer payments : Are government payments to individuals, not in exchange for goods or services. Final Products : GDP counts only new domestic prodution of final goods Intermediate goods: goods not yet finished or second hand goods Expenditure approach : GDP= C + I + G + (X-M),,,,, C=consumption expenditure,,, I=Investment,,, G=government expenditure and X-M=net exports (X=exports,,, M=Imports) Income approach (GDP): The income approach adds the incomes of all factors of production Nominal GDP: Is the value of all final goods and services based on prices existing during time period of production Real GDP: is the value of all final goods produced during a given time period based on the prices existing in a selected base year. GDP chain price indext: The GDP chain price index is a measure that compares changes in the prices of all final goods during a given period to the prices of those goods in a base year Discuss the short-comings of the GDP in terms of (1) the measurement being less than perfect
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Notes - Gross Domestic Product: Is the market value of all...

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