Mankiw # 39; s Ten Principles of Economics.mp4
GDP is the distinct gross domestic product GDP, which is the gross national product there are two ways to determine the GDP of a nation.
You've probably heard this term on the news or read about it in the paper when the national or global economy is being discussed GDP is defined as the value of all goods and services produced in a country during a given period intermediate goods are not counted because they affect double counting occur GDP also refers to the country's income and GDP also refers only to goods produced in a country This means that if a company is located in a country, but manufactures goods in another, these products are counted as part of GDP foreign country, not the country of origin of the company, for example, BMW is a German company, but manufactured cars the United States are counted as part of GDP in the United States.
You can think of another way, GDP is a way for us to measure the productivity of a country's overall Breaking Lowered the name to understand the raw concrete refers to the sum of all the country's resources to the production domestic production refers only exit from the country whose production was produced Finally, the product refers only to goods and services that make up the production.
Corporate profits is income which amounts to shareholders of public companies.
Income is income that Proprietors rightful owners of private enterprises.
This interpretation misses two other, non-income components to be added to find the GDP.
Gross domestic product or GDP is a measure of the total productivity of a country, there is a quantifiable figure indicates how much better the country and its people are at that point of time GDP is defined as the market value of all total goods and services produced in the country for the given time period.
Consumption C is essentially all goods and services consumed in the country haircuts, hamburgers, gasoline, etc. are part of the GDP in the country where they were purchased.
Government spending G is the sum of all goods and services purchased by the government.
Investment company is a little more complicated because most people confuse this term with a financial investment in the economy, we refer to investment such as the purchase of new capital by enterprises or individual consumers, enterprises can purchase non-residential capital buildings, equipment, etc. and consumers can buy homes ie residential capital If we always hear the kind of investment made by the stock market or finance, we will use the term specifically financial investment Thus, unless otherwise indicated, the investment will always capital investment.
Exports X are all goods and services exported to foreign countries other words, the goods and services produced by the domestic country and consumed by foreign countries.
Imports M are the opposite These are goods and services produced by other countries but consumed by the domestic country.
Together XM netexports This is just a way to get the net value of goods traded between the home country and the rest of the world why we add exports, but imports subtract Well, exports are added to GDP because the domestic country receives payment for goods produced and part of the value added to the economy of the home country, however, we subtract imports, instead of imports not just count, because the payment of the property is removed from the home country and added to the foreign countries that they came to think you can subtract imports by taking the share of consumption where the good or service has come to a foreign country.
for economy, the economy, the goods produced services, country estate services products, services produced countries.