Chapter 11 Outline |
I. GROSS DOMESTIC PRODUCT (GDP)
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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. |