ECON 1010 Study Guide - Final Guide: Market Basket, Nominal Interest Rate, Potential Output
Document Summary
Chapter 20 measuring gdp and economic growth. Gross domestic product (gdp) the market value of all final goods and services produced within a country in a given period of time. Market value it means we count the retail price of a good or service. Final goods and services it means the end use of product and what final user pays. (not from one firm to another) we look at final goods because it avoids double counting. Meaning it is some quantity over a period of time. Gdp measures the value of production = total expenditure on final goods = total income. Used to measure economic growth, fluctuation and standard living. Business sector, consumer sector, government sector, and foreign sector. Gdp tells us whether economy is expanding or in a recession. We measure gdp across the world to compare country"s economics. Gross national product (gnp) what that is produced in the world by national firms ( like canadian firms).
