GDP Flashcards
GDP
Gross Domestic Product: a monetary measure of the market value of all the final goods and services produced and sold in a specific time period by countries.
Final Good
A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs. Example: Dishwasher
Intermediate Good
Used to produce other goods. Example: Cake Mix
GDP Equation
The total market value of final goods and services produced in the economy during a period of time.
Your father buys a new John Deere riding lawn mower.
Final Good.
Business Cycle
Fluctuations in economic activity, such as employment and production.
Business Cycle Expansion
A period during which total production and total employment are increasing.
During a business cycle expansion, total production _______ and the total employment _______
Increases and Increases
GDP does not include
household production
The size of the underground economy would tend to decrease if the government of a country
decreased government regulations on business.
Suppose Bob works for Mary as a proofreader. Mary and Bob marry and have six children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
GDP will decrease