GDP Review Econ2307
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This 2 page Class Notes was uploaded by Nikita Hendricks on Saturday September 10, 2016. The Class Notes 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 11 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: 09/10/16
Macroeconomics Chapter 1- Review Continuation GDP - Gross Domestic Product The total market value of all final goods and services produced annually within a country's borders. Final Good A good in the hand of its final user. (e.g. buy goods at HEB) Intermediate good A good that is an input to the production of a final good. e.g. farmer taking goods to mill Double/multiple counting Counting a good more than once when computing GDP Transfer payment A payment to a person that is not made in return for goods and services currently supplied. (Social security?) Per Capita GDP If we divide a country's GDP by the population in the country, we get per capita GDP. Calculate GDP multiply the quantity of each good produced by the quantity of good produced. GDP=[PQ Consumption/household sector Sum of spending on durable goods, non durable goods and services. largest component of US GDP - 70% Durable goods Goods that are expected to last for more than 3 years e.g. refrigerators ovens or cars Non durable goods Goods that are not expected to last for more than 3 years e.g. food Investment/Business sector The sum of all purchases of newly produced capital goods, changes in business inventories and purchases of new residential housing. e.g. new machinery Government purchases Federal, state and local government purchases of goods and services and gross investment in highways, bridges and so on Net Exports Exports mince imports Calculate GDP using expenditure C + I + G + (EX-IM) consumption +Investment+government purchases + Net export National income Total income earned by US Citizens and business no matter where they reside or are located.
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