Gross Domestic Product and Growth Outline

Name _________________________ Class _______________ Date _______________
CHAPTER
12
CHAPTER OUTLINE
Gross Domestic Product and Growth 2
Directions: Fill in the outline below. Filling in the blanks will help
you as you read and study Chapter 12.
I. Section 1: Gross Domestic Product
A. Defining Gross Domestic Product
1. Gross domestic product (GDP) is the
of all final goods and services produced in a country in a given year.
2. Gross domestic product may be calculated using the
approach or the
approach.
3. Nominal GDP is measured in prices. Real GDP is
measured in
prices.
B. Limitations of GDP
1. GDP does not include goods and services or
business for which there is no record.
2. GDP does not measure people’s health and .
C. Factors That Make GDP Go Up or Down
1. The two main factors that affect GDP are supply
and
demand.
2. As the price level rises, real GDP . As the price
level falls, real GDP .
D. Other Measures of Output and Income
1. GDP is used to determine gross product,
national product, national ,
income, and
personal income.
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Name _________________________ Class _______________ Date _______________
CHAPTER OUTLINE (continued)
Gross Domestic Product and Growth 2
II. Section 2: Business Cycles
A. Stages of the Business Cycle
1. The four stages of the business cycle are expansion, _________________,
_________________, and trough.
2. _________________, _________________, and _________________ are
three kinds of contractions.
B. Factors That Drive the Business Cycle
1. The four main factors that keep the business cycle going are business
_________________, interest rates and _________________, consumer
_________________, and _________________ shocks.
2. Leading _________________ are variables that help economists predict
business cycles.
III. Section 3: Economic Growth
A. Measuring Economic Growth
1. Real GDP per capita is real GDP divided by _________________.
2. The basic measure of economic growth is the percentage of change in
_________________ _________________ over a period of time.
B. Capital Deepening
1. Capital deepening is the process of _________________ the amount of
capital per _________________.
2. Saving, _________________, and _________________ all affect capital
deepening and economic growth.
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