Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 11: Problem 1

Define: a. gross domestic prod\(\operatorname{uct}(\mathrm{GDP})\) b. double counting

Short Answer

Expert verified
a. Gross Domestic Product (GDP) is the total value of goods produced and services provided in a country during one year. b. Double counting is the error of including the same costs or benefits more than once in economic computations, particularly in the calculation of GDP.

Step by step solution

01

Define Gross Domestic Product (GDP)

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It serves as a comprehensive measure of a nation’s overall economic activity.
02

Define Double Counting

Double counting in economics is a term that refers to the act of including the same costs or benefits more than once in the calculation of the Gross Domestic Product (GDP) or other economic measures. This can lead to inaccurate results as it inflates the value of the GDP.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Gross domestic product is \(\$ 6,000\) billion in one year and \(\$ 6,500\) billion the next year. Is output necessarily higher in the second year than in the first? Explain your answer.

Why are only final goods and services computed in GDP?

Suppose the CPI was 143 in year 1 and 132 in year 2 Did prices rise or fall between year 1 and year \(2 ?\)

Define: a. price index b. consumer price index c. aggregate demand curve d. aggregate supply curve e. unemployment rate f. employment rate

Which of the following are included in the calculation of this year's GDP? a. Twelve-year-old Bobby mowing his family's lawn c. Barbara Wilson buying 100 shares of Chrysler Corporation stock d. Stephen Sidwhali's receipt of a Social Security check e. An illegal sale at the corner of Elm and Jefferson
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free