UNIT – 3
CHAPTER 23
3 GDP and its measurements
Prepared by Asif Z. Warsi
, Topics (Unit-3)
3.1 Concept of National Income (GDP)
3.2 Calculations of GDP
3.3 Other measures of National Income
3.4 The Components of GDP
3.5 Differentiate b/w Nominal and Real GDP
, Gross Domestic Product (GDP)
• 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?
• A parent that stays home to care for a baby
• Dinner at a restaurant
• Dinner at home
• A social security check
• A haircut
• The construction of an office building
• The sale of a ten-year-old house
• An oil change
• Interest on a CD at your bank
• A new car
• Tires purchased by Ford to put on a new car
CHAPTER 23
3 GDP and its measurements
Prepared by Asif Z. Warsi
, Topics (Unit-3)
3.1 Concept of National Income (GDP)
3.2 Calculations of GDP
3.3 Other measures of National Income
3.4 The Components of GDP
3.5 Differentiate b/w Nominal and Real GDP
, Gross Domestic Product (GDP)
• 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?
• A parent that stays home to care for a baby
• Dinner at a restaurant
• Dinner at home
• A social security check
• A haircut
• The construction of an office building
• The sale of a ten-year-old house
• An oil change
• Interest on a CD at your bank
• A new car
• Tires purchased by Ford to put on a new car
