Personal Fin and Econ

• - It is the most important and broadest measure of an economy

• - It is the total dollar value of all the final and services produced within a nation in 1 year.

• GDP

• Per Capita GDP

• Consumption Sector

• Investment Sector

• - Measures productivity in the US

• - Counts dollar value

• - Counts only new and final product. No resale items, so item only counted once.

  • - Useful in making year to year comparisons.

• GDP

• Per Capita GDP

• Consumption Sector

• Investment Sector

Things that do not count to _______

• - Used items

• - Intermediate products

• - Items produced outside the country

• - Items produced in a different year

• - Items not paid for (non-market activity)

• - Stock & bonds

• - Transfer payments (social security)

• GDP

• Per Capita GDP

• Consumption Sector

• Investment Sector

The average productivity

• GDP

• Per Capita GDP

• Consumption Sector

• Investment Sector

United States Per Capita GDP is NOT $46, 800.

• True

• False

United States Per Capita GDP is $46, 800.

• True

• False

- Looks at all consumer spending

• - Looks at disposable income minus personal savings

• - Largest part of GDP

• GDP

• Per Capita GDP

• Consumption Sector

• Investment Sector

- Represents all business spending

• - Contains all the businesses

• - This is all the value of capital goods created in the economy.

• Also, when business buy capital goods.

• Consumption Sector

• Investment Sector

• Gov't Sector

• Foreign Sector

• - Represents all gov't spending

• - It is all the goods and service that the gov't purchases in a year.

• Consumption Sector

• Investment Sector

• Gov't Sector

• Foreign Sector

• - Net exports of goods and services

• - Looks at the difference between the amount of goods and services

• exported and imported

• Consumption Sector

• Investment Sector

• Gov't Sector

• Foreign Sector