In this lesson, our instructor Jibin Park gives an introduction on gross domestic product. He explains national accounts, circular flow of the economy, expanded circular flow diagram, and real vs. nominal gross domestic product.
The macroeconomics equation is as follows: Y = C + I + G + NX
Y represents real GDP
C = Consumer expenditures
I = Business Investment
G = Government purchases
NX = Exports – Imports
The Circular Flow Diagram provides a simplified view of how an economy operates.
There exists three different ways of calculating the GDP
Nominal GDP uses current prices; real GDP uses constant prices
Real GDP is a more accurate means of measuring the health of the economy than is the nominal GDP
GDP per capita is the most common measure used to determine a nation’s standard of living
Gross Domestic Product
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.