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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
• 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
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.
- Winter '14