Welfare and GDP

Welfare- the health happiness, fortunes of a group 

Growth- measure value of output- GDP

GDP- the total output of a country in a given period of time, sum of consumption goods,investment goods, and government purchases

GDP- refers to final goods eg not raw materials, capital goods= final goods 

Savings part of income

Inventories = part of investment 

Government = goods and services spending by the government

Does not include transfer benefits and taxes 

Exports  x imports z - x- z 

GDP = Pa*Qa+ Pb*Qb+ Pc*Q - if a country only had three gods 

Measuring economic activity- value of all goods and services produced/ total value of earrings from factor services provided/ total value of spending on goods and service