Macro Chapter 6 . Presentation 1. Gross Domestic Product (GDP). The total market value of all final goods and services produced in a given year Includes domestically supplied and foreign supplied resources employed within the country
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Ex: If a chocolate chip cookie manufacturer paid a chocolate manufacturer $50 for chocolate, and the total price for a shipment of chocolate chip cookies is $100, the value added ($100 - $50) is $50.
As an example: The finished chocolate chip cookie is the good counted in GDP. The chocolate chips used to make the cookies, which are intermediate goods, have already been valued into the final product.
Excluded because they also do not contribute to the current production. A "black market" includes any sale made by a business who does not pay taxes to the government. Examples include fake DVDs in China, gambling, drugs etc.
also known as "underground" sales, the money involved in the transaction isn't reported to the government