Unit 2 Notes - GDP

1. GDP....What is it??

- GDP stands for Gross Domestic Product and is defined as the total market of all goods and services produced within a country's borders within a given year

2. What's not included in GDP??

• Used or "second-hand goods" (To avoid multiple counting)
• Intermediate Goods (Goods that require further processing before ready for final use)
• Gifts/Transfer Payments (No output produced;recipients don't contribute to current production)
• Unreported Business Activity (Tips)
• Illegal Activity (Drugs, Human Trafficking)
• Stocks and Bonds (Purely Financial Transaction)
• Non - Market Activity (Volunteer Work)

3. GNP....What is it??

- GNP stands for Gross National Product and is defined as a measure of what its citizens produce and whether they produce those items within its borders