Gdp is a flow variable measured over a period of time

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GDP is a flow variable – measured over a period of time. Quarter – March, June, September, December Australian GDP in March 2010 = $326.9 billion Year – just add-up GDP over 4 quarters Calendar – Mar-09 + Jun-09 + Sep-09 + Dec-09 Financial – Sep-09 + Dec-09 + Mar-10 + Jun-10
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16 The market value of final goods and services produced in a country during a given period. GDP is measure of aggregate production or output Use market prices to value (or weight) quantities of various goods and services Example: Quantity Market Price 10 cars $20,000 per car 100 apples $1 per apple GDP = $200,000 + $100 = $200,100
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17 What about goods and services with no observed market price? Some are included in GDP: National defense – use costs of provision (costs of buying equipment, wages of soldiers, etc.) Some are excluded from GDP Unpaid housework
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