Textbook Notes (363,178)
United States (204,428)
Economics (307)
ECON 1901 (44)
Chapter 6


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Temple University
ECON 1901
Nathan Blascak

Chapter 6 • real GDP per capita measures a country’s standard of living • GDP = gross domestic product -market value of all final goods and services produced in a country in a year • GDP per capita- GDP divided by a country’s population • intermediate goods- goods that are bundled and saved only to be sold later • final goods/services- sold to final users to be put in personal inventories • selling usd goods is not included in GDP b/c GDP measures PRODUCTION -but sercies of people who sell these goods are included • gross national product (GNP) - what is produced by the labor and property supplied by permanent residents • GDP is more commonly used than GNP • GDP is calculated every quarter of a year by the US Bureau of Economic Analysis • nominal GDP is calculated using prices at the time of scale • increases in production are the true indicators of improved quality of life -to compare GDP over time, we should always compare real GDP (GDP calculated using same prices all year) • real variable- variable that corrects for inflation • GDP deflator- price index that can be used to measure inflation • GDP Deflator - Nominal GDP/ Real GDP X 100 • measure current economic performance using GDP growth • recessions- widespread decline in income -lasts more than a couple months -widespread across various sectors of the econ
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