GDP- the market value of all final goods and services produced within a ration in a given year
What’s not included in GDP-
Intermediate goods-a good that required further processing before purchase
Used or handmade goods
purely financial transactions(stocks and goods)
Unreported business activity
Illegal activity
Nonmarket activity eg. Volunteering, babysitting, anything you perform for yourself, producing your own source of labor,
Transfer payments: Public(Social security, VA, welfare) + Private(Scholarships)
International GNP
What’s included in GDP-
C- 65% Personal Consumption Expenditures, wages
IG- 17% Gross private domestic Investment: New fact. equip., Fact. equip. maint., construction of housing, unsold inventory of products build in a year
G- 20% Government Spending
Xn- -2% Net Exports (Exports- Imports)
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