New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

ECON2105 Week 2 Pt. 2

by: Hagar Notetaker

ECON2105 Week 2 Pt. 2 ECON 2105 080

Hagar Notetaker
GPA 4.0

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

GDP part 2 notes from 8/30/16
Class Notes
Econ, ECON2105, Economics, Macroeconomics, notes, Lecture, GDP, nominal, realGDP
25 ?





Popular in Economics

This 3 page Class Notes was uploaded by Hagar Notetaker on Thursday September 1, 2016. The Class Notes belongs to ECON 2105 080 at Georgia State University taught by in Summer 2016. Since its upload, it has received 51 views. For similar materials see PRINCIPLES OF MACROECONOMICS in Economics at Georgia State University.


Reviews for ECON2105 Week 2 Pt. 2


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/01/16
ECON2105 Week 2 8/31/16 Chp. 6 (Pt. 2)  GDP as different kinds of expenditures o BEA is government agency that tallies GDP date  National income accounting  Breaks GDP into 4 major categories GDP = C + I + G + N Net Consumption Investment Government Purchases Export Consumption  Final purchase of goods and services by household o Durable Goods  Last long time  Fridge, Car, etc. o Subject to business cycle o Non-durable Goods  Goods consumed over short period of time  Groceries, magazines, etc. o Not affected much by business cycle Investment  Not “investing in stocks and bonds (considered a double count)  Private spending on tools, factories, and machines used to produce future output  Includes purchases by business that add to inventory o Stock goods that firms can use  New house purchases by individuals Government Purchases  Spending from all levels of gov’t o Salaries o Roads and schools o Postal offices ECON2105 Week 2 8/31/16  Doesn’t count: o Transfer payments  Healthcare & social security  When people spend income from these, then part of GDP for consumption/investment o Foodstamps, ect. Net Exports  Net Export = Exports – Imports  Only exports included in GDP because they were produced domestically o If exports < imports  trade deficit Real vs Nominal GDP  Real- rakes away effects of inflation o GDP measured with constant prices (base year prices)  Usually presented where real and nominal start together or as 100 on table  Nominal- GDP measured with current year prices Definitions  Price Level o Index to measure prices of goods & services in economy  GDP Deflator o Measure of price level that includes price of final goods & services in GDP Computing Real GDP ????????????????????????????  ???????????????? ???????????? = ???????????????????? ???????????????????? 100 ECON2105 Week 2 8/31/16 Growth Rates  Used to tell how fast our economy is growing  % change formula ???????????? ????????????????????−???????????? ???????????????????? o % ????ℎ???????????????? = ???????????? ???????????????????? ???? 100 ???????????? ???????????????? (????−1  ???????????? ????????????????????ℎ ???????????????? = ???? 100 ????????????(????−1) o EX:  2011 = 5.23% Difference? INFLATION  2012 = 3.4% % nominal GDP ≈ % ∆ Real GDP + % ∆ GDP deflator Shortcomings 1. Doesn’t count for non-market goods 2. Doesn’t count for underground market 3. Doesn’t count environmental quality 4. Doesn’t count leisure time


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.