Concepts
- National Income Accounting (Aggregates)
- Gross Domestic Product (GDP)
- Expenditures Approach
- Components of GDP (C+I+G+X)
- Net Exports (Exports – Imports)
- Trade Balance
- Income Approach
- Disposable Income
- Final Goods vs. Intermediate Goods
- Included or Excluded
- Increase in Inventories (Included)
- Transfer Payments (Excluded)
- Criticisms of GDP
- Nominal GDP vs. Real GDP
- GDP Per Capita (Standard of Living)
Overview
Production is the engine that drives economic activity. The amount of production in an economy has a huge influence on how many jobs are available and how much income is earned. As a result, it is vital that we develop a way to measure production in our economy so we can observe when it’s growing or when it’s slowing down. The fundamental way we measure production in our economy is through calculating the gross domestic product (GDP). In this lesson, we cover a wide range of concepts pertaining to GDP to help us understand how it works and why it’s so important to our economy.
Materials
Lecture
Video Coming at Later Date
Quiz
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