1 / 6

GDP

GDP. Gross Domestic Product. Total market value of all final goods and services produced within the borders of a country in one year. GDP is calculated as an indicator of the economy’s health.

rupert
Download Presentation

GDP

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. GDP

  2. Gross Domestic Product • Total market value of all final goods and services produced within the borders of a country in one year. • GDP is calculated as an indicator of the economy’s health. • Final goods and services are newly produced goods that have reached their final consumer; that is, they will not be resold to anyone else.

  3. Final v. Intermediate Goods • Window glass in new automobiles • Dresses • Screws used in a cruise missile • Flour for making bread • Bread • Manicures • Lumber in a new house • Cruise Missile • New factory • Dresses • Cloth for making dresses

  4. 3 Major Components of GDP • C=household purchases of consumer goods and services • G=government purchases of goods and services (ex: missiles, tanks) • I=purchases of businesses of capital goods, such as factories, tools, and new houses (investment) • *(Ex=Exports) • *(M=Imports) • C+G+I=GDP • C+G+I+ (Ex-M)=GDP

  5. GDP Per CAPITA • GDP per person • C+I+G/Population Trade Surplus/Deficit • Trade Surplus-Exports are greater than imports • Trade deficit-Imports are greater than exports

  6. What’s NOT counted in GDP? • 1. Nonmarket activities • Goods/services that people make or do themselves. • Ex: mowing your lawn, cooking dinner, babysitting your own kids, washing your own car • 2. The underground economy • “The Black Market” Where goods/services are bought/sold illegally. • Taxes are not paid on the exchange of these goods

More Related