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【正文】 ine earned from the production of these goods and services. Summary ?GDP is the market value of all final goods and services produced within a country in a given period of time. ?GDP is divided among four ponents of expenditure: consumption, investment, government purchases, and exports. Summary ?Nominal GDP uses current prices to value the economy’s production. Real GDP uses constant baseyear prices to value the economy’s production of goods and services. ?The GDP deflatorcalculated from the ratio of nominal to real GDPmeasures the level of prices in the economy. Summary ?GDP is a good measure of economic wellbeing because people prefer higher to lower ines. ?It is not a perfect measure of wellbeing because some things, such as leisure time and a clean environment, aren’t measured by GDP. Graphical Review The CircularFlow Diagram Firms Households Market for Factors of Production Market for Goods and Services Spending Revenue Wages, rent, and profit Ine Goods amp。 Services bought Labor, land, and capital Inputs for productio
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