GEOG 109 Chapter Notes - Chapter 6: Demand Shock, Business Cycle, Gross Domestic Product
9 Dec 2014
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Document Summary
Real gdp or real gross domestic product measures the value of final goods and services produced within the borders of a country during a specific period of time (typically a year) This statistic is very useful because it can tell us whether an economy"s output is growing. To determine real gdp, government staticians first calculate nominal gdp which totals the dollar value of all goods and services produced within the borders of a country using their current prices during the year that they were produced. Gdp can increase from 1 year to the next even if there is no increase in output. We can compare real gdp numbers from one year to the next and really know if there is a change in output (rather than prices) Unemployment is the state a person is in if he or she cannot get a job despite being willing to work and actively seeking work.
