Ways GDP is computed

Including Goods and Services

* MAJORITY COMES FROM SERVICES Ex: medical, financial, transportation, education, and technology 2/3 of all US outputs -not all ways outputs are produced are the same could change

Within a Country

- GDP only includes goods and services within a nation's physical borders -GNP (Gross National Product)- is the output produced by residents of a nation -more globalized just do GDP

Particular Time Period

- Only counts during a given time - Produced in earlier years does not count (like resale of car) -stocks and bonds do NOT count just transfer of ownership - brokerage fees do count they are a service

Counting Market Values

-not only quantity BUT also price of the good -nation's economic health depends on the TOTAL quantities of goods and services produced also on their prices which can rise

Including ONLY final goods and services

Intermediate goods- are goods that firms repackage or bundle with other goods for sale at a later stage Final goods- are goods sold to final users - retail price is the true value of each intermediate step YET it would overstate the phone's value CAN'T DOUBLE COUNT