About This Chapter
Basics of Measuring the Economy - Chapter Summary
What is the Gross Domestic Product (GDP)? What does 'investment' refer to in relation to economics? These are topics you can expect to learn more about when you use this chapter. These lessons provide overviews of economic resources, production, goods and services and contain definitions and examples that clarify and simplify this information. Upon completion of this chapter, you should have developed or reinforced the following abilities:
- Relate details about the circular flow of economic activity model
- Use the expenditure approach to measure economic growth
- Identify the components of the Gross Domestic Product
- List elements not included in the GDP
- Differentiate between an intermediate and a final good
- Explain the difference between investment and investments in economics
Taught by instructors with backgrounds in teaching economics and finance, these lessons provide short bits of information and take only 5-10 minutes to review. You can watch videos on any device, at any time, and even print transcripts to use as handy reference guides. Measure how much you have learned by taking self-assessment quizzes for each lesson and track your progress on your Dashboard.
1. Circular Flow of Economic Activity: The Flow of Goods, Services & Resources
Learn about the simple model used to describe where money goes and what it is exchanged for in a market economy. The circular flow model of economic activity shows you the basic relationships between households, firms and the government.
2. Gross Domestic Product: Using the Income and Expenditure Approaches
In this lesson, you will learn how economists measure gross domestic product using two different methods - the income approach and the expenditure approach.
3. Gross Domestic Product: Definition and Components
Learn how economists measure the total production of an economy using gross domestic product (GDP). This lesson also outlines the components that make up a GDP. How do we calculate the economic value of a nation?
4. Gross Domestic Product: Items Excluded from National Production
In this lesson, you'll gain a better understanding of what the gross domestic product is by exploring things that are excluded from it. Why do we count some items in the GDP but not others?
5. Investment vs. Investments in Economics
Discover the important difference between investment in economics and investments that individuals make by saving out of their income. This lesson defines and outlines the basic components of gross private domestic investment.
Earning College Credit
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the AP Macroeconomics: Exam Prep course
- Scarcity, Opportunity Cost & Production Possibility Curves
- Understanding Comparative Advantage, Specialization & Exchange
- Market Equilibrium, Supply & Demand
- Inflation & Adjustment in Economics
- Unemployment Basics
- Understanding Inflation & Unemployment
- Overview of Aggregate Demand & Supply
- Understanding Macroeconomic Equilibrium
- Understanding Economic Growth and Productivity
- Money & the Market
- The Central Bank & Monetary Policy
- Fiscal & Monetary Policies in Economics
- Foreign Exchange & Trade Balance
- Overview of Inflows, Outflows & Restrictions
- AP Macroeconomics Test Information & Strategy
- AP Macroeconomics Flashcards