Inventories business inventories tools machines tools

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ng goods used in producing other other goods; also includes includes business inventories business inventories Tools, machines, Tools, machines, factories factories Government Government Government Government purchases purchases Expenditures Expenditures made by federal, state, and and local governments governments Paper, pens, tanks, Paper, pens, tanks, planes planes Foreign Foreign Exports Exports Expenditures made by foreigners for Expenditures made by foreigners for American-made goods American-made goods Cars, wheat, Cars, wheat, computers computers Imports Imports Expenditures made by Expenditures made by Americans for for foreign-made goods foreign-made goods Cars, radios, Cars, radios, computers computers They are only close, however; they still need to adjust for U.S. purchases of foreignproduced goods. For example, if Cynthia in Detroit purchases a Japanese-made television set for $500, this $500 TV purchase would not be included in GDP because GDP is a measure of goods and services produced annually in a country. Specifically, the U.S. GDP is a measure of goods and services produce...
View Full Document

Ask a homework question - tutors are online