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This 2 page Study Guide was uploaded by Nikita Hendricks on Friday September 16, 2016. The Study Guide belongs to Econ2307 at 1 MDSS-SGSLM-Langley AFB Advanced Education in General Dentistry 12 Months taught by Dr. Ssozi in Fall 2016. Since its upload, it has received 10 views. For similar materials see Macroeconomics in Economics at 1 MDSS-SGSLM-Langley AFB Advanced Education in General Dentistry 12 Months.
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Date Created: 09/16/16
GDP The market value of all final goods and services produced domestically in one year GDP per Capita GDP divided by population; indicates quality of life/status of a country Market Value the value of goods and services at market price; any activity wit no measurable market value does not go into GDP Final avoids double-counting; focus on product market; value is not calculated during stages of production Produced FINAL PRODUCT Domestically (Within a Country) made in that country ( regardless of where the company is based); Final goods manufactured in the country (not where individual parts are made) In a year year of production, not year of sale (does not count items sold as used); Items produced but not sold count as an inventory expenditure 3 things not counted in GDP Transfer payments (public and private) Stock Market Transactions (except broker fees) Secondhand Sales (unless markup) Transfer payments public=social security, welfare private= trade a chicken for bread Income recieved but not earned; from one income earning citizen to another non-earning citizen Spending, Output, Expenditure Approach to GDP C+I+G+X consuption by households, investment by firms, spending by government, net exports by foreign markets Non-durable/durable, investment in fixed and inventory expenditures, depreciation of goods, government expenditures (not transfer payments), expenditures on exports minus imports Income Approach to GDP the sum of all earnings by households and firms in a year Growth Rate Calculation (Current Year-Base Year) ------------------------------------ Base Year times 100 to get the percent Price Index Change in price (new price over base year price) times 100 Nominal GDP GDP adjusted for inflation Real GDP GDP as if prices were constant Nonmarket Activity people who can make their own goods/do their own services (shortcoming GDP) Leisure The value, satisfaction, and possible increase in productivity due to vacation (shortcoming GDP) Improved Product Quality People buy higher quality over cheap goods; people buy less because things don't depreciate (shortcoming GDP) Real GDP per Capita Real GDP divided by the population
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