Measur ing Economic Performance. The market value of the final goods and services produced by workers and other resources located within the border of a nation over period of one year.
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the market value of final output produced annually by all labour and property supplied by a nation’s households, no matter where those resources are employedGDP x GNP
an estimate of the value of a nation’s final products based on prices of certain base yearNominal GDP x Real GDP
in a nation (GDP) all products intermediate products
1) Flow-of-Product Approach(The EXPANDITURE COMPONENTS OF GDP)
2) Earnings or cost approach (The INCOME SIDE OF GDP)
- corporate profits
- net interest paid
-social security (payroll) taxes
+ government transfer payments
+ personal interest, dividends and other transfers
3. Calculate real and nominal GDP using following dates: