Lesson 3.4 Macro Economics basics-GDP-GNI-HDI
Learning Goals: By the end of this lesson you will be able to
GDP measures only the final value of goods and services that an economy produces. Using the final value avoids what is known as multiple counting. The cost of these components is included in the final price of the car. If the components were counted when they were sold to the company that built the car and then counted again when the car was sold to the consumer, they would be counted twice, which would make the output of an economy appear higher than it actually is. To get an accurate measure of the value of an economy’s total output, the only goods and services included are the ones purchased for final use. In other words, they are goods and services that will not be resold.
How do we calculate GDP?
- •gross domestic product (GDP)
- •expenditure approach
- •income approach
- •Consumption
- •Investment
- •imports
- •Exports
- •economic growth
- •standard of living
- •GDP per capita
- •nominal GDP
- •real GDP
- •underground economy
- •unemployment rate
- •labour force
- •full employment
- •GDP gap
- •potential GDP
Why are HDI and GPI important?
Students to complete this after you've finished all activities/tasks in today's lesson.