Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 2, Problem 1RQ
To determine
Define
Expert Solution & Answer
Explanation of Solution
GDP refers to the sum all final goods and services produced in a country during a given period. The four basic components of GDP are consumption (C), investment (I), government purchases (G), and net export (NX). GDP can be calculated using the expenditure approach, income approach, and output approach.
Economics Concept Introduction
Gross domestic product (GDP): GDP refers to the sum all final goods and services produced in a country during a given period.
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Students have asked these similar questions
What can you analyse from the aspects regarding GDP?
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Gross domestic product (GDP) is a measurement of the total value of all goods and services produced in the United States over a given time period. It is used by economists, government officials, market forecasters and others to gauge the overall health of the U.S. economy. How do consumers drive the nation's GDP?
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- look at this (Links https://www.cbsnews.com/news/why-gdp-fails-as-a-measure-of-well-being/) article published by CBS News. Do you agree with the author's assessment that GDP fails to measure well being? Why (or why not)? Are there things that contribute to your well-being and happiness but are excluded from the calculation of GDP? Share an example and describe why it might be excluded from the GDP calculation.arrow_forwardIf General Motors builds cars in Germany, is their value counted in Germany's GDP?arrow_forwardDefine GDP and its various components in details.arrow_forward
- How do statisticians measure GDP? What does GDP not tell us about the economy? Why do you suppose the GDP is much higher today than 50 to 100 years ago?arrow_forwardWhat is GDP, and why is it a useful measure? What are the most importantcomponents of GDP in the U.S. economy today?arrow_forwardWhat are the four components of GDP?arrow_forward
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