GDP
What is GDP?
The dollar value of all final goods and services produced within a country in 1 year.
What is NOT included in the GDP?
1. Intermediate goods(already were counted one before, avoid double counting)
2. Non-Production Transactions(used goods)
3. Nonmarket & Illegal Activities(things made at home;black market)
What is GDP per capita?
Average value of economic output per person in a country.
What is the formula for calculating GDP?
C+I+G+(X-M)
Calculate the Gross Domestic Product (GDP) for a fictional country, 'Econoland,' given its consumer spending of $500 billion, investment of $200 billion, government purchases of $150 billion, exports of $80 billion, and imports of $50 billion, and explain if this indicates strong economic growth.
$880 Billion
500+200+150(80-50)=$880 Billion