Raising Funds How a business manages its finances is a key factor in whether or not that business succeeds. Where do businesses find the money to get started?

Lesson Objective Explain and compute the gross domestic product. Content Vocabulary gross domestic product (GDP) The total value of the goods and services produced in a country in a given year, used to monitor the health of a countrys economy. real GDP per capita GDP real GDP The gross domestic product adjusted to include the effects of inflation. per capita GDP The gross domestic product of a country distributed over the population, or the GDP per person, which indicates a nations standard of living.

The United States has an inflation rate of 1.9 percent and a GDP of $10,253.2 billion. What is the real GDP? Example 1

Step: Find the real GDP. GDP – (GDP × Inflation Rate) $10,253.2 billion – ($10,253.2 billion × 1.9%) $10,253.2 billion – $194.8 billion = $10,058.4 billion Example 1 Answer

The United States has a population of 284,796,887 and a GDP of $10,253.2 billion. What is the per capita GDP? Example 2

Step: Find the per capita GDP. GDP ÷ Population $10,253,200,000,000 ÷ 284,796,887 = $36, or $36, Example 2 Answer

Find the real GDP. GDP: $34,300,000,000 Inflation rate: 6 percent Practice 1

$32,242,000,000 Practice 1 Answer

Find the per capita GDP. GDP: $76.5 billion Population: 2.4 million Practice 2

$31,875 Practice 2 Answer