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Published byLeonard Dawson Modified over 9 years ago
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Notes MEASURES OF ECONOMIC ACTIVITY
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3 Main Measures of Economic Activity Gross Domestic Product Labor Activities Consumer Spending HOW IS ECONOMIC ACTIVITY MEASURED?
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Why is GDP important? Compares total output from year to year Gross Domestic Product (GDP) – total value of all goods and services produced in a country in 1 year. Includes: Consumer spending Business spending Government spending Exports minus Imports Does NOT include Intermediate goods Underground market activities GDP
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Most accurate measure of true growth is GDP per capita Measures output per person Calculated by total output (GDP) divided by total population Increase means economy is growing Decrease means an economy is facing difficulties COMPARING GDP
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Labor Activities Employment Labor Force – all people 16 and over who are working or actively seeking work Unemployment rate – portion of people in labor force who cannot secure a job Productivity Consumer Spending Personal Income Salaries, wages, investments, and government payments Retail Sales Sale of major retail products Auto, building and materials, furniture, gasoline, clothing, food OTHER MEASUREMENTS
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