ECON-1010 Chapter Notes - Chapter 6: Gross Domestic Product, Net Domestic Product, Final Good
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ECON-1010 Full Course Notes
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Chapter 6: gross domestic product, unemployment, and inflation. Statisticians count almost all individual spending as consumption; the one exception is the production of a new house. All are in principle transferring income from one group of individuals to another: net exports--[-4%: 13% exports, -17% imports, exports--goods and services produced domestically and sold abroad. Imports--goods produced abroad and purchased domestically: **spending equals production. Income: **spending equals income, when statisticians add all of the numbers together. Structural unemployment--unemployment caused by a mismatch of skills and job opportunities; this is a tough type of unemployment to solve because it means that the workers that are looking for work cannot find work for which they are qualified. Solutions are often retraining, relocating, or developing a willingness to learn a whole new occupation. Full employment (full employment level of unemployment)--zero cyclical unemployment; the only kind of unemployment we are experiencing is frictional, and in some cases, a bit structural.