GDP: Gross Domestic Product

GDP (Gross domestic product)

The value of all final goods and services produced within a country in a given period of time

Gross national product

the market value of all goods and services produced by a country/nation's nationals at a given period of time

Consumption

spending by households on goods and services, with the exception of purchases of new housing

Investment

the purchase of goods that will be used in the future to produce more goods and services. Purchases such as spending on capital equipment, inventories, and structures, including household purchases of new housing (businesses)

Government purchases

Spending on goods and services by local, State, And federal governments.

The components of GDP

GDP= C+I+G+(X-M)

net exports

spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)

GDP does NOT include:

1. economic activity outside of markets (washing ur car)

2. Goods & services that we buy to make other things (materials to make the iPhone 15)

3. Transfer Payments (not until spent by the person)

GDP is measured in:

1 year and what is made in 1 country

Market Value

Everything that goes into GDP at its market price (iphone costs $800 vs jersey costs $80)