gross domestic product. what is gross domestic product? the total market value of all final goods...
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Gross Domestic Product
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What is Gross Domestic Product?
The total market value of all final goods and services produced during a given period of time.
Formerly called Gross National Product (GNP)
The most common measure of the level of economic activity at the national level.
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Categories of Spending
Consumer Spending (personal consumption expenditures) – 65%
Business Spending (gross private domestic investment) – 13%
Government Spending (government purchases of goods and services) – 21%
Net exports of goods and services – 1%
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What GDP Does Not Measure
Non-market activities The underground economy Goods and services not
sold Improvements in efficiency Changes in the quality of
goods and services produced
The quality of people’s lives
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How the Top Five Nations Size Up
Rank (2012) Country GDP (Millions USD)
--1
European UnionUnited States
$16.2 Trillion$14.5 Trillion
2 China $6.9 Trillion
3 Japan $5.9 Trillion
4 Germany $3.6 Trillion
5 France $2.8 Trillion
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How the Top Five Nations Size Up
Country GDP Growth Rate Per Capita GDP
United States 2.2% (↓ 3.40%) $45,959
Japan 1.9 % (↓ 2.80%) $34,402
Germany 2.6% (↑ 2.20%) $40,315
China 11.9% (↑ 10.50%) $2,459
Great Britain 2.9% (↑ 2.70%) $45,626