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Gross Domestic Product
Part one of term paper
The is one of the important tools used to measure a nation’s productivity and output. It is a “scorecard” that can be used to measure one year’s output against another, or even to compare one nation‘s economic output (as long as the formula’s limitations are recognized) to another’s.
Components of
There are two approaches to ...
Part two of term paper ... by resources located within the boundaries of a nation. The components of the expenditure model, C+I+G+(X-M) are:
C = Consumption
I = Investment
G = Government Purchases
(X-M) = Net Exports
It is important to note that because they are not recorded, household production and the underground economy are not included in Gross Domestic Product, nor are improvements to the quality of goods and services. The Gross Domestic Product Index is a useful measure of a nation’s productivity. ...
Word count: 647 | Approximate pages: 3
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