Presentation on theme: "GDP Gross Domestic Product. 1. What is the definition of the GDP (Gross Domestic Product)? The value of a country's overall output of goods and services."— Presentation transcript:
1. What is the definition of the GDP (Gross Domestic Product)? The value of a country's overall output of goods and services (typically during one fiscal year) at market prices, excluding net income from abroad.valuecountry'soutputgoods and servicesfiscal yearmarket pricesnet incomeabroad
Real vs. Nominal GDP 2. What is "Real GDP", and "Nominal GDP"? Which gives you a better way to compare years? “Real GDP” adjusts the total for changes in prices. “Nominal GDP” is in the year’s current prices. Real allows you to compare year to year, so it is “better”.
Per Capita GDP GDP Per Person- Approximately the same as per person income. GDP divided by the population? https://www.box.com/embed/lx4uriurbn3xeki.swf https://www.box.com/embed/lx4uriurbn3xeki.swf Currently (2012) at $46,843
What is the BEA? The Bureau of Economic Analysis (part of the Department of Commerce) is the agency charged with reporting the GDP from statistics provided by the National Bureau of Economic Research, the NBER. They are found at www.bea.gov and www.nber.org.www.bea.gov www.nber.org
What is the current GDP in 2011 Dollars? $15.735 Trillion Dollars in 2011 Dollars (Nominal GDP) $13.500 Trillion in chained 2005 dollars (Real GDP)
Recession? Two consecutive quarters of shrinking real GDP is one definition of a recession.
What is "the Expenditure Approach"? 8. What is "the Income Approach"?
"C + I + G+ (x-im) = GDP. This means that you can find the GDP by adding up what consumers buy, what business buys (investment) and what government buys and then adjust for imports (minus) and exports (plus)
Your parents learned "GNP" instead of "GDP". What's the difference in definition? GDP measures what U.S. companies produce anywhere in the world. GDP measures what is produced inside the borders of the U.S.