Chapter 11 Outline
A. Comments and General Definitions
1. Gross domestic product (GDP) is the market value of the final goods and services produced in an economy over some time period.
a. Final goods are goods purchased for final use.
1. Intermediate goods, goods purchased for resale or for use in producing other goods, are not included as double counting would occur.
2. Gross domestic product uses market prices because these prices represent the value that people place on goods and services.
3. Gross domestic product measures all the goods produced over some t'nne period whether they are sold or not.
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