scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 770
ECO 261 NOTES1 The most common measure of the total output of the economy is the GDP Gross Domestic Product This is the total value of goods and services produced in an economy in a given year This differs from GNP Gross National Product because GNP includes GDP plus income earned abroad Real GDP is adjusts for changes in prices while nominal GDP is just a basic idea that measures current prices to establish GDP Real GDP is the preferred method of production because it gives a more accurate account of changes in prices and real output The groups that purchase GDP include - consumption expenditures purchases by consumers - private investment expenditures purchases by firms - government purchases federal state and local government purchases - net exports purchases by foreign sector or domestic exports minus domestic imports I believe that the government expenditure is most significant because it has the most overall influence on the condition of the economy2 Economic growth occurs through two mechanisms capital deepening and technological progress Capital deepening is an increase in the stock of capital per worker Technological progress is an increase in output without an increase in capital or labor Several factors that are necessary to create and promote economic growth are spending on research and development creative destruction the scale of the market induced inventions and the accumulation of knowledge I believe that investments in human capital are the most important part in encouraging growth in the US This is because with a more educated work force andor more skilled workers the overall level of income and technological innovation would become more apparent raising the overall level of economic growth5 The
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA