Economics: National Income Accountng:

The Gross Domestic Product (GDP) measures the dollar value of goods and services produced annually within a nation's borders. It includes only the value of output that passes through official markets, however. It does not include activities of homemakers, do-it-yourselfers, or unreported income from crime or unrecorded employment. Such unrecorded items are excluded from the national income accounts.

GDP: caluculated by multiplying all of the final goods and services produced in a 12-month period by their prices, and then adding them up to get the total dollar value of production. Some things are excluded. There are limitations to what GDP informs us about. GDP is the best measure of economic health.

Other measures:

Gross National Product (GNP)
Net National Product (NNP)
National Income (NI)
Personal Income (PI)
Disposable Personal Income (DI)

Economic Sectors: Consumer, Investment, Government, Foreign

The Output-Expenditure Model: Macroeconomic model showing aggregate sector demands

Critical Thinking:

• What would be the effects of a decline in GDP?
• What effect do you think the computer industry has had on the GDP? Use examples to support your claim.