Chapter+05+_Gross+Domestic+Product_

Chapter+05+_Gross+Domestic+Product_ - Chapter 5 Gross...

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Chapter 5 Gross Domestic Product (GDP)
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Definition of GDP 2 Total market value of all the goods and services produced by the factors of production located in a country during a certain period of time except those produced by households for household consumption
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Q 1 = 10 pounds P 1 = $2/pound Q 2 = 4 units P 2 = $100 each GDP = P 1 × Q 1 + P 2 × Q 2 + P 3 × Q 3 + ∙∙∙∙ GDP = $2 × 10 + $100 × 4 = $420 3 GDP is the total market value of all the goods and services produced by the factors of production located in a country during a period of time, except those produced by households for household consumption.
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Standards of living Employment Why Market Prices? 4
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Don’t forget services. 5 GDP is the total market value of all the goods and services produced by the factors of production located in a country during a period of time, except those produced by households for household consumption.
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So, To Include or Not to Include? 1. Second-hand goods 2. Asset transfers 3. Capital gains/losses 4. Compensation for services produced 5. Goods produced but not sold 6. Semi-finished goods 6 GDP is the total market value of all the goods and services produced by the factors of production located in a country during a period of time, except those produced by households for household consumption.
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So, To Include or Not to Include? 1.
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This note was uploaded on 04/03/2012 for the course ECN 001B 1b taught by Professor Baghermodjtahedi during the Spring '10 term at UC Davis.

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Chapter+05+_Gross+Domestic+Product_ - Chapter 5 Gross...

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