MGTA01H3 Study Guide - Final Guide: Gross Domestic Product, Business Cycle, Underemployment
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MGTA01H3 Full Course Notes
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Document Summary
Purpose -> to produce the things that a country"s people need and want. In order to judge the effectiveness of an economic system, and therefore the prosperity of a country"s people, we want to know: Domestic: here at home or inside our borders. Product: the result or that which gets produced. Gross domestic product (gdp): the total value of all the goods and services that are produced within a country, during any given period. Most definitions of gdp emphasize the goods and services produced within. Gdp is also regularly calculated for provinces, states and territories. Limitations of gdp - what it does not tell us. Gdp tells us about size of a nation"s economy. With higher demand for food, shelter, and employment, an important test of a country"s economic system is whether gdp is keeping pace. Want goods and services to increase every year.
