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were to include housework. How might it go
about placing a dollar
value on housework? 11 (286-309) EMC Chap 11 11/17/05 6:05 PM Page 293 Focus Questions Measuring GDP What are the four sectors of the economy?
What are consumption, investment, government purchases, export spending, and
How is GDP measured?
What is per capita GDP? Key Terms
import spending How Is GDP Measured?
The GDP of the United States today is
more than $12 trillion. How did economists
come up with this figure? What exactly did
they do to get this dollar amount?
First, economists break the economy into
four sectors: the household sector, the business sector, the government sector, and the
foreign sector. Next, they state a simple fact:
the people in each of these sectors buy
goods and services—that is, they make
Economists give names to the expenditures made by each of the four sectors. The
expenditures made by the household sector
(or by consumers) are called consumption.
The expenditures made by the business sector are called in...
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This document was uploaded on 01/16/2014.
- Winter '14