Explain what happens to the official measure of GDP in each of the following situations. The GDP Formula consists of consumption, government spending, investments, and net exports. Components of GDP: Fill in the blank with the component of GDP each of these items would fit into. Q. _____ A retailer purchases tennis shoes from a Chinese manufacturer, then sells them. Some economists have suggested an alternative approach to measure GDP as Sum of Expenditure. Investment A business purchases computer software and a PC 3. 3. Gross domestic product adds together many different kinds of goods and services into a single measure of the value of economic activity. ECONOMICS GDP Worksheet Name: WHAT’S IN GDP? Gross Domestic Product (GDP) can be measured by taking into account […] 1. _____ Investment _____ A business purchases computer software and a PC 3. WHAT’S IN GDP? _____ A local library purchases new audio books. ACTIVITY 1: Components of GDP Which component of GDP would each of these fit into? The four major components. Net exports or imports A retailer purchases tennis shoes … _____ Consumption _____ Mechanic fixes a transmission 2. GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X – M): [latex]Y = C + I + G + (X-M)[/latex] _____ A retailer purchases tennis shoes from a Chinese manufacturer, then sells them. c.prices based on the assumption that producers make no profits. The only exception is the shadow or black economy. The four major components that go into the calculation of the U.S. GDP, as used by the Bureau of Economic Analysis, U.S. Department of Commerce are: 2. 2. _____ A local library purchases new audio books. Investment Expenditure (I) 3. 1. To do this, GDP makes use of a.market prices. _____ Government spending _____ A local library purchases new audio books 4. a) Air quality improves significantly throughout the United States, but there are no effects on aggregate production or on market prices of final goods and services. b.statistical estimates of the value of goods and services to consumers. Government spending A local library purchases new audio books 4. This measure includes inflation. As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports). Components of GDP: Fill in the blank with the component of GDP each of these items would fit into. 1. STUDENT HANDOUT Joshua Ballard ACTIVITY 1: Components of GDP Which component of GDP would each of these fit into? Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. We break down the GDP formula into steps in this guide. Private Consumption Expenditure (C) 2. The four components of gross domestic product are personal consumption, business investment, government spending, and net exports. GDP is the country's total economic output for each year.It's equivalent to what is being spent in that economy. Lei 1 Sabrina Lei Mr. Prospero CIA4U1 27 October 2020 WHAT’S IN GDP? 3. Government Purchases of Goods and Services (G) 4. _____ A mechanic fixes a transmission. A. Net Exports (X – M)! ADVERTISEMENTS: Four major components of GDP are: 1. The total dollar value of all final goods and services produced within the country’s border in a given year. That tells you what a country is good at producing. A. Consumption Mechanic fixes a transmission 2. 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