GDP
==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•)
^^What does a trade deficit mean?^^: you are a wealthy nation; high standard of living
==What happens if the Business Cycle stays in a trough for too long?==: 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