- Economists collect statistics on production, income, investments, and saving. This is called National Income Accounting.
- The most important measure of growth is GDP.
GDP: Is the total dollar value of all final goods and services produced within a countries borders within a given year.
What's NOT included in GDP count?
- Intermediate goods
-No multiple counting
- Only count final goods
-Second Hand or USED Goods
-Non Market Activity
-Illegal drugs
- Babysitting/Volunteering
-Financial Transactions
-Stocks
- Bonds
- Real Estate
-Gifts- Transfer Payments
-Social Security
- Scholarships
- Transfer Payments
What IS Included in GDP count?
-Consumption: 67% of the economy
- Gross Domestic Private Investment
-Government Spending
- Xn: Net Exports/ Imports
After going over the information on this blog, i became more familiar with my own notes. I agree with the information provided. GDP is the goods and services provided within a country in a year, so i would say this blog is precise. She went over what is and what is not included in GDP, although if anything i would suggest, it would be to add the formula. After learning unit 2, i have realized that knowing the formulas is one of the most important things to actually understand the lesson. Over all, this blog is well put and provided the right details.
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