ECON 114 Lecture Notes - Lecture 5: Gdp Deflator, Gross Domestic Product, Net National Product
Document Summary
Microeconomics the study of how individuals and how irms make decisions and how they interact in markets. Macroeconomics the study of economy-wide phenomena, including inlaion, unemployment, and economic growth. Gross domesic product (gdp) measures the total income of a naion; the most closely watched economic staisic because it is the best measure of a society"s economic well- being. For an economy as a whole, income must equal expenditure. Gdp the market value of all inal goods and services produced within a country in a given period of ime. Gdp adds together many diferent kinds of products into a single measure of the value of economic acivity. It includes all items produced in the economy and sold legally in markets. Gdp also includes the market value of the housing devices provided by the economy"s stock of housing. There are some products, however, that gdp excludes because measuring them is so diicult. Gdp includes only the value of inal goods.