Unit 2: Introduction to Macroeconomics

Lesson 7a: Measuring the Economy - GDP

Key Formulas

 

GDP = C + Ig + G + Xn

NI = wages + rents + interest + corporate profits + proprietor's income

NDP = C + In + G + Xn

NDP = GDP - depreciation

In = Ig - depreciation

Xn = X - M

real GDP = (nominal GDP / price index) x 100

 

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Lesson 7a