BY SHANE MCNAMARABLOCK 3

Chapter 2

What is GDP?

GDP is the total dollar value of all goods and services made in a country during one year. The United States has the highest GDP in the world currently($10.9 trillion).

GDP Per Capita

GDP per Capita is the output per person. GDP per Capita is calculated by dividing GDP by total population. The United States also has the highest GDP per capita($36,000).

Unemployment Rate

The unemployment rate is the number of people in the labor force who are not working. Unemployment gives less people jobs, who then have less money to spend, which slows down the economy. North Carolina has a 8.7% unemployment rate, which is 44th in the United States.

Personal Income

Personal income can be salaries, wages, investment income, or government payments. Personal income is used to buy goods and services.

Productivity

A higher productivity means they are producing more and more people are working. Capital resources, worker training, and management techniques improve productivity.

Components of GDP

1. Consumer spending for clothing, housing or food.

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

3. Government spending to pay employees and buy supplies.

4. Exports less the imports