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Gross Domestic Product
Part 1 of Paper
....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 : income and expenditure. The income approach adds up the income derived fr.... Part 2 of Paper
.... The model defines consumption as the total annual expenditures for goods and services by households. Examples of this component are groceries, clothing, haircuts, plumbing repairs, and health care, TVs and furniture. Consumption is the largest component in the Gross Domestic Product expenditure model. (McEachern, 154)
Investment
Investment is defined as the annual spending on annual output not used for current consumption. Physical capital, i.e., buildings and new machine, are a larg.... |
| Number of words: 647 - Approximate pages: 3 |
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