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Ch 4: Measuring the Economy

About This Chapter

Watch economics video lessons and learn about the flow of goods and services, gross domestic product and more. Each lesson is accompanied by a short multiple-choice quiz you can use to check your understanding of these topics.

Measuring the Economy

Economy is a term that typically describes the monetary flow and conditions of a particular country. There are many factors that are used to measure the economy. You've probably heard the term economy thrown around during news broadcasts. When doing stories on the real estate market, stock market, retail sales and other money-related topics, reporters often refer to the economy in general as a reference for the condition for each market segment. Many times the economy is to blame for problems with employment, too. To help you better understand what all the buzz is when it comes to the economy, our lessons will help you learn how an economy works and how it is determined whether an economy is in good or bad condition.

To understand how the economy is measured, you have to understand how it works. Lessons will cover the circular flow of activity that occurs in an economy. Learn how all the factors of an economy - goods, services, resources and production - are dependent upon each other for good economic conditions.

Discover the Expenditure Approach to measuring the economy. Study the concept of Gross Domestic Product (GPD) and how it is used in the Expenditure Approach. Find out the components of GPD. See how it contributes to growth in the economy. Also learn about the differences between an intermediate and final good.

Wrap up these lessons with a look at investments. Research the difference in investment and investments in economics. Thanks for watching!

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