Chapter 7
GDP
- total dollar value of all final goods and services produced within a nations borders ina.
Given time period usually one year
- get equation
hwo to measure GDP
1) expenditure approach= sum value of all final goods and services produced within the
nations boarders= sums up the 4 categories of expenditures
- Y= C + I + G + NX
- C= consumption= senidng on goods and services by private individuals and households
- investment= I= spending on productive inputs such as factories, machinery,and investors
change
- government purchases= G= spending on goods and services by all levels of the gov
- net exports= NX- exports minus imports
2) value added approach
3) income approach
- all approaches will give the same answer
GNP
- a measure of the total economic output produced by the residents of a country including
income earned by its citizens abroad minutes income earned by foreign Residents within
the country.
GDP deflator measure of the overall change in price in a an economy using the ration between
real and nominal GDP.
Know how to calculate GDP deflator and inflator
- Can use nominal and real GDP to calculate the GDP deflator and aren’t of inflation
- know to calcite the c ompudong of GDP defalotor and the rule of 70
- *refer to second pic for example
chapter 8
cost of living
inflation
- impact= income, wealth, price
market basket
- the prices of many different goods and erasures must be considered when comparing
the cost of living across time and place
- the market basket is a list of specific goofs and services in fixed quantities
- used to measure the cost of goods and services over time and location
calculating total cost
- the market basket is considered the apples and oranges
- refer to pic for the chart
GDP
- total dollar value of all final goods and services produced within a nations borders ina.
Given time period usually one year
- get equation
hwo to measure GDP
1) expenditure approach= sum value of all final goods and services produced within the
nations boarders= sums up the 4 categories of expenditures
- Y= C + I + G + NX
- C= consumption= senidng on goods and services by private individuals and households
- investment= I= spending on productive inputs such as factories, machinery,and investors
change
- government purchases= G= spending on goods and services by all levels of the gov
- net exports= NX- exports minus imports
2) value added approach
3) income approach
- all approaches will give the same answer
GNP
- a measure of the total economic output produced by the residents of a country including
income earned by its citizens abroad minutes income earned by foreign Residents within
the country.
GDP deflator measure of the overall change in price in a an economy using the ration between
real and nominal GDP.
Know how to calculate GDP deflator and inflator
- Can use nominal and real GDP to calculate the GDP deflator and aren’t of inflation
- know to calcite the c ompudong of GDP defalotor and the rule of 70
- *refer to second pic for example
chapter 8
cost of living
inflation
- impact= income, wealth, price
market basket
- the prices of many different goods and erasures must be considered when comparing
the cost of living across time and place
- the market basket is a list of specific goofs and services in fixed quantities
- used to measure the cost of goods and services over time and location
calculating total cost
- the market basket is considered the apples and oranges
- refer to pic for the chart
