ECO 1102 Chapter Notes - Chapter 7: Gross Domestic Product, Externality, Aggregate Demand
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ECO 1102 Full Course Notes
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Gdp (gross domestic product) - the total market value of all final goods and services produced annually in an economy https://www. visualcapitalist. com/80-trillion-world-economy-one-chart/ Benefits of economic growth : reduction in illiteracy, reduction in poverty, improved health, longer lives, political stability, improvement in living standards, job creation. Poor economic conditions : jobs are scarce, firms close down, people struggle. There four important pieces of the gdp that one must consider: Market value - the amount for which something can be sold on a given market- Of final goods and services - goods and services produced for final use. Produced within a country - goods and services are counted towards gdp in terms of location of production; - gdp measures production within a country domestic production. In a given period of time - usually refers to an annual estimate. The output of the economy can be calculated over any time period - a day, a month, a year.
