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Economic Growth (GDP)

Author: Kate Eskra

Source: Images of Circular Flow Diagram created by Kate Eskra

Video Transcript
Terms to Know
Expenditure Approach

Sum of all final goods and services purchased in an economy;
Y equals C plus I plus G plus left parenthesis X – M right parenthesis 
where Y (GDP), C (consumer purchases), I (investment outlays), G (net government spending), X (exports), M (imports).

GDP

Gross Domestic Product; the sum of all final goods and services sold within a nation’s domestic borders; a measurement of economic activity.

GDP Growth

The measure of change in GDP over time.

Resource Cost - Income Approach

Sum of the amount of resources used to produce goods and services, or sum of the income received from purchases of these resources.