ECON 2002.01 Lecture Notes - Lecture 8: Gdp Deflator

• School: Ohio State University
• Department: Economics
• Course: ECON 2002.01
• Professor: Darcy Hartman

Document Summary

Gdp- gross domestic product- looking at the market value of all final goods and services produced in a country during a period of time, typically one year. A final good or service is a good or service purchase by a final user. During a period of time to measure the total output in a given year, we measure the good and services produced only in that given year. There are two main conceptual ways to measure total economic activity in a economy: total production, total income. Consumption- is spending by households on goods and service. Investment- spending by firms and new factories. Government purchases- spending by federal, state, and local governments on on goods and services. Net exports- defines as the value of exports minus the value of imports (usually negative in the united states) Shortcomings of gdp as a measure of total production.