GDP Is the most important measure of economic activity. Is a measure of the income and expenditures of an economy. Gross Domestic Product What’s a Gross What’s a Gross Domestic Domestic Product? Product? Broccoli Broccoli ? ? I was gonna I was gonna say say “Preparation “Preparation H.” H.”
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GDP Is the most important measure of economic activity. Is a measure of the income and expenditures of an economy. Gross Domestic Product What’s a Gross.
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GDPIs the most important measure of economic
activity.Is a measure of the income and expenditures
of an economy.
Gross Domestic Product
What’s a Gross What’s a Gross Domestic Product?Domestic Product? Broccoli?Broccoli? I was gonna say I was gonna say
“Preparation H.”“Preparation H.”
The Circular-Flow Diagram
Firms Households
Market for Factors
of Production
Market for Goods
and Services
SpendinSpendingg
Revenue
Wages, rent, and
profit
IncomeIncome
Goods & Services
sold
Goods & Services bought
Labor, land, and capital
Inputs for production
GDP is used to compare economies world wide
The Measurement of GDP
GDP is the dollar value of all final goods and services
produced within a country in a given year.
The Measurement of GDP
• Production is measured as a $$$ dollar value $$$:
the price that Consumers, Businesses, Government and International buyers pay or earn for goods and services.