Why Worry about gdp?



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Why Worry about GDP?


Real GDP
Income
Employment

Gross Domestic Product

  • Gross domestic product (GDP) is the
    • total market (or dollar) value
    • of all final goods and services
    • produced in a country
    • during a given period of time
  • GDP does not include
    • Work in homes
    • Criminal activity
    • Underground economy

Is it part of GDP?

Is it part of GDP?

  • A parent that stays home to care for a baby – No
  • Dinner at a restaurant – Yes
  • Dinner at home – No, but yes on the groceries
  • A social security check – No
  • A haircut – Yes, unless you did it yourself
  • The construction of an office building – Yes
  • The sale of a ten-year-old house – No
  • An oil change – Yes, unless you did it yourself
  • Interest on a CD at your bank – No
  • A new car – Yes
  • Tires purchased by Ford to put on a new car – No

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