ECON 0110 Lecture Notes - Government Spending, Xm Satellite Radio, Social Security
Document Summary
The market (dollar) value of all final goods and services produced in the u. s. in a given year. If output remains constant, but prices increase, then nominal gdp will increase. Nominal gdp is influenced by changes in prices. The fact that nominal gdp increased does not prove that output increased. Goods and services produced for final use by final users. Goods that are produced by one firm for use in further processing by another firm (purchased as an input to use as a final good) Apples purchased by a bakery to make a pie. Steel or tires used in producing a new car. All goods and services produced inside the boundaries of the u. s count in gdp. Items produced in foreign countries by americans or american owned firms do not count in. We can measure gdp on a monthly, quarterly, yearly basis. Avoid double counting the value of intermediate goods.
