Chapter 2 SlideshowChapter 2 Slideshow

By: Kelsey WinchesterBy: Kelsey Winchester33rdrd block block

GDPGDP

• GDP is the total dollar value of all final goods GDP is the total dollar value of all final goods and services produced in a country during one and services produced in a country during one year.year.

• The united States has the highest GDPThe united States has the highest GDP

GDP Per CapitaGDP Per Capita

• GDP per capita is another way to measure GDP per capita is another way to measure economic growth. It describes the output per economic growth. It describes the output per person. person.

• The U.S. has the highest GDP Per Capita.The U.S. has the highest GDP Per Capita.

Unemployment RateUnemployment Rate

• The unemployment rate is the portion of The unemployment rate is the portion of people in the labor force who are not working. people in the labor force who are not working.

• The NC employment rate is 7.9.The NC employment rate is 7.9.

Personal IncomePersonal Income

• Personal income refers to salaries and wages Personal income refers to salaries and wages as well as investment income and government as well as investment income and government payments to individuals.payments to individuals.

• Ex: 1. A father getting his paycheck from Cisco. Ex: 1. A father getting his paycheck from Cisco. 2. A teenager getting her salary after a week 2. A teenager getting her salary after a week of working at Panera. of working at Panera.

ProductivityProductivity

• It is important to have higher productivity It is important to have higher productivity because it is a vial source of economic growth, because it is a vial source of economic growth, which is an increase in output per person.which is an increase in output per person.

• Improvements in capital resources Improvements in capital resources (equipment and technology), worker training, (equipment and technology), worker training, and management techniques can improve and management techniques can improve productivity.productivity.

4 Components of GDP4 Components of GDP

1.1. Consumer spending for food, clothing, Consumer spending for food, clothing, housing, and other spending.housing, and other spending.

2.2. Business spending for buildings., equipment, Business spending for buildings., equipment, and inventory items.and inventory items.

3.3. Government spending to pay employees and Government spending to pay employees and to buy supplies and other goods and services.to buy supplies and other goods and services.

4.4. The exports of a country less the imports into The exports of a country less the imports into the country.the country.