Understanding GDP and Economic Indicators

📋 Course Outline

1. GDP Components
2. Measuring GDP
3. Real vs Nominal GDP
4. GDP Limitations
5. Inflation Measurement
6. Causes of Inflation
7. Effects of Inflation
8. Types of Unemployment
9. Unemployment Measurement
10. Natural Unemployment Rate
11. GDP-Inflation-Unemployment Link
12. Economic Policies Impact

📖 1. GDP Components

🔑 Key Concepts & Definitions

• Consumption (C): Expenditure by households on goods and services, representing the largest component of GDP.
• Investment (I): Spending by businesses on capital goods, residential construction, and inventories, crucial for future productive capacity.
• Government Spending (G): Total government expenditures on goods and services that directly contribute to GDP, excluding transfer payments.
• Net Exports (X - M): The difference between exports (X), goods and services sold abroad, and imports (M), goods and services purchased from abroad; reflects international trade balance.