NickECampbellEcon
Monday, December 20, 2010
Post 11 - Using the 4x3technique. 3 rules and 4 ingredients create a recipe or math formula that explains how GDP is calculated!
Equation:
GDP =
private consumption
+
gross investment
+
government spending
+ (
exports
−
imports
)
RULES:
Wealth distribution
–GDP does not take disparity in incomes between the rich and poor into account.
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