By the end of this chapter you will be able to:
1. Define gross domestic product (GDP) and its components and use the expenditure approach to calculate GDP.
2. List those transactions that are excluded from GDP calculations and explain the reason for the exclusion.
3. Describe the circular flow diagram and explain its implication for national income accounting.
4. Outline the process through which investment and saving are made equal.
5. Distinguish the various national income accounts.
6. Outline the limitations of GDP as a measure of social well-being.
7. Distinguish between real GDP and nominal GDP and explain why real GDP is the preferred measure of production.
8. Describe the behavior of the business ...
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