Gdp is the sum of gross value added by all resident

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Unformatted text preview: nstant 2005 U.S. dollars. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Tuesday, December 3, 2013 China, India, US, EU Tuesday, December 3, 2013 Gross State Product vs Gross National Product Tuesday, December 3, 2013 State Growth Rates Tuesday, December 3, 2013 GNP does not measure • Income inequality • Unemployment • Well Being - Health • Clean Air, Clean Water, Environmental Services, Wilderness Protection ( not market goods ) Tuesday, December 3, 2013 Ex: Cigarette Production • Selling Cigarettes is a final good • Selling advertising for Cigarettes is a final good • Selling health care to people with emphysema is a final good • GDP increases Tuesday, December 3, 2013 Ex: Sulfur Dioxide Scrubber Coal Electricity • Scrubber itself is an intermediate good • Electricity...
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This note was uploaded on 12/09/2013 for the course EEP 1 taught by Professor Berk during the Spring '12 term at University of California, Berkeley.

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