Diversified and created manufacturing sectors and specific service sectors like

Diversified and created manufacturing sectors and

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Diversified and created manufacturing sectors and specific service sectors like computers – Microsof International trade and finance, tourism Econ #4 4: Measuring Wealth – GDP et al GDP – Gross Domestic Product
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Sum total of all the goods and all the services produced and sold in that country in that calendar year o Housework, Child rearing, Growing food for yourself, Collecting firewood, House building for yourself, Collecting water, Cooking – labor not counted in GDP o Underground things not counted in GDP – yard sale, black market, flea market, bartering between friends – anything that the gov’t doesn’t know about o Illegal activities are not counted in GDP – drugs, slave trading, sex slaves, mafia activities – not taxed, gov’t doesn’t know about it GDP divided by total population = GDP per capita o Better indicator of wealth per person per year o China, India, Nigeria – worth less when broken down by huge populations o Other countries are still very similar Poorer countries are still very rich, but on the streets because GDP doesn’t count their illegal activities (drug trading) Human Development – HDI map – how well a state is doing, not counting raw sales – health, well-being, etc. o Fatness index – how well a society is doing by how obese they’re getting 5: Other Monetary Matters GDP growth rate $100, GDP rate = 1%; 1 year later $101 $100, GDP rate = 10%; 1 year later $110 Economic stagnation – prolonged period of slow growth Not fast enough for people who want to see stuf happen Who is growing economically? Russia, Central Asia, Latin America, Vietnam, Southeast Asia, Indonesia, India, China, Iraq, DRC, Mongolia – 12% When you start at a smaller GDP its way easier to grow more, way faster Insatiable demand for fossil fuel energy has made energy-rich countries really rich, and growing Peace = economic boom times afer war Who is stagnant? Who is shrinking economically? 6: Sold! Wrap it up! Everything is connected at all scales US recession European recession Global recessions
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Economic boom, influences the whole world and our lives Protectionism has lost to free-trade
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  • Fall '08
  • JDBOYER
  • Economics, National accounts

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