Friday, December 17, 2010

Post 11: 4x4

Step 1: Calculate Consumption expenditures
Step 2: Calculate Government purchases
Step 3: Determine Gross private domestic investments
Step 4:  Calculate Net exports
Step 5: Put it all together

GDP = consumption + gross investment + government spending + (exports − imports)
GDP = C + I + G + (X-M).

-Final Output - Only value the final goods or services when calculating GDP
-Current year - Does not include used cars or secondhand clothing
-Output produced within a national border - Does not include products made outside the US

No comments:

Post a Comment