GDP

Exports/Imports

________ (X- M): services /goods sold abroad (minus), services /goods purchased abroad.

Consumption & Consumer spending

________ : new clothes, groceries, food, music streaming, gas, NEW car, healthcare, services (salon, legal, accounting, tech)

Gross Domestic Product

________: the dollar value of ALL FINISHED goods and services within a calendar year.

Trade Deficit

________: imports> exports (bought more from other nations than we sold; subtract from GDP) (∩)

Economic Growth

________: A nation making more goods and services this year than the last year (Did we make more goods ?)

GDP

Gross Domestic Product

Current GDP (2021)

$23 trillion

Current GDP (China)

$17.46 trillion

Economic Growth

A nation making more goods and services this year than the last year (Did we make more goods?)

Causes of economic growth

better technology, better education/training of the labor force, growing workforce/population (procreation, immigration), new raw materials

Factors that help economic growth

investments in infrastructure (roads, ports, airports, electric grid, internet), political stability, good healthcare

Shortcomings of GDP calculations

no calculation for quality of life, no calculation for valuable unpaid workers(volunteers/stay at homes), only need to increase GDP if we are a developing country or we have a population increase

Gross Domestic Product

the dollar value of ALL FINISHED goods and services within a calendar year

Average Income

GDP / Population

Goods

1/3 of jobs in the USA

Services

2/3 of jobs in USA

Expenditure Method

C+I+G+X-M=GDP

C

consumer spending (consumer spending)

I

investment (business)

G

government spending

X

exports

M

imports

Trade Deficit

imports> exports (bought more from other nations than we sold; subtract from GDP) ( ∩ )

Trade Surplus

exports> imports (sold more to other nations than we bought; add to GDP) ( ᴗ )

a recession

if it moves into the long run, it becomes a depression

Consumption and Consumer Spending

new clothes, groceries, food, music streaming, gas, NEW car, healthcare, services (salon, legal, accounting, tech)

Not Included in C

black market, unpaid services, used goods of any kind

Business Investments

new home construction, Jan.1-Dec.31 inventory, purchase of all capital goods (company car, internet, airplane tickets, lunches, office products, tractor, machinery, technology anything purchased for BUSINESS)

Not included in I

stocks, bonds, $ earned from stocks or bonds

Government Spending

all goods/services bought by the government, military, services (intelligence, computer programs, phone service, teachers, rangers, all military workers, TSA, Coast Guard)

Not included in G

welfare checks (payments), government scholarships (grants), social security

Export-Imports (X-M)

services/goods sold abroad (minus), services/goods purchased abroad