Chapter 23 talked about GDP, or Gross Domestic Product; what
it is, how it is measured, and what it reveals. GDP is defined as the market
value of all the final goods and services produced within a country within a
given period of time and is used to calculate the total expenditure and total
income of a nation. The formula for GDP is the sum of a nation's consumption,
investment, government purchases, and net exports. GDP can be measured as
nominal GDP, which measures the production of goods and services at current
services, and as real GDP which measures the production valued at constant
prices according to a base year. Nations with a high GDP can afford better
education and healthcare systems, while nations with low GDP often have lowered
life expectancy, higher infant/maternal mortality, and less access to clean
water.
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