Economics_Ch11

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Unformatted text preview: e 11 o’clock news about the growth rate in per capita real GDP in the United States over the last year. Sam is bored to tears. He says under his breath, “Who really cares about such things? That stuff doesn’t affect anyone.” • Is Sam right that the growth rate in per capita real GDP doesn’t affect anyone? 287 11 (286-309) EMC Chap 11 11/17/05 6:05 PM Page 288 Focus Questions What is GDP? Why are only final goods and services computed in GDP? What is omitted from GDP? What is the difference between GDP and GNP? National Income Accounting Key Terms g ross domestic product (GDP) double counting What Is Gross Domestic Product? gross domestic product (GDP) The total market value of all final goods and services produced annually in a country. A family has an income. For example, the annual income of the Smith family might be $90,000. A country has an income too, but we don’t call it an income. Instead, we call it gross domestic product. Gross domestic product (GDP) is the total market value of...
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This document was uploaded on 01/16/2014.

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