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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!

5 Lessons in Chapter 4: Measuring the Economy
Test your knowledge with a 30-question chapter practice test
Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

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.

Gross Domestic Product: Using the Income and Expenditure Approaches

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.

Gross Domestic Product: Definition and Components

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?

Gross Domestic Product: Items Excluded from National Production

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?

Investment vs. Investments in Economics

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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