Macroeconomics GDP

GDP (Gross Domestic Product)

The dollar value of all final goods + services produced in a nation in a year

Nominal GDP

Current prices, includes inflation

Real GDP

Constant prices, takes out inflation

Real GDP per capita

GDP / Population

Nominal GDP - Inflation

Real GDP

Final Goods

goods and services that have been purchased for final use and not for resale or further processing or manufacturing

Intermediate Goods

goods used in the production of final goods; not included in GDP

Double Counting

counting both the final and intermediate goods in GDP

Expenditures Method

C + I + G + x (x-m)

Consumer Spending

C

Investment Spending

I

Government Spending

G

Net Exports

X

Unemployment Rate

Unemployment / Labor Force

4 components of GDP using income method

Wages, Interests, Rents, Profits

Currently negative in US

Exports

Investment Speanding

Businesses spending money

Economic method that is negatively affected when GDP decreases

Unemployment